Annual report and accounts 2019/20
The Youth Justice Board for England and Wales
HC 765 The Youth Justice Board for England and Wales Annual report and accounts 2019/20
Report presented to Parliament pursuant to Schedule 2, paragraph 8 (2) of the Crime and Disorder Act 1998
Accounts presented to Parliament pursuant to Schedule 2, paragraph 9 (4) of the Crime and Disorder Act 1998
Ordered by the House of Commons to be printed on 16 September 2020
HC 765 © Crown copyright 2020 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at https://www.gov.uk/official-documents Any enquiries regarding this publication should be emailed to [email protected] or sent to us at: Youth Justice Board for England and Wales Clive House 70 Petty France London SW1H 9EX ISBN 978-1-5286-1857-1 CCS0320358550 09/20 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Office Contents
Foreword 5
Performance report 2019/20 7 Overview 8 Performance analysis 14 Our work in 2019/20 19
Accountability report 2019/20 31 Accountability report 32 Governance statement 37 Remuneration and staff report 48 Staff statistics 55 Parliamentary accountability and audit report 61 The certificate and report of the Comptroller and Auditor General to the Houses of Parliament 62
Financial statements 2019/20 65
Annual report and accounts 2019/20
Foreword
I am proud of what YJB staff and our colleagues and partners across the system have achieved over the last year to improve outcomes for children. I hope that this report has captured these efforts as we all strive to do our best for children in the youth justice system and the communities we serve. I believe that we have remained true to our vision and continue to make headway against our youth justice system aims. The number of arrests, first time entrants, cautions and sentences all continued to decline1. We have also not seen the increases in knife and weapon offences involving children or reoffending that some might have predicted. This progress is testament to the unwavering commitment and compassion of those who work in and influence youth justice. For your efforts, I extend my heartfelt thanks. In our 2018/19 business plan we outlined the priorities2 set by our Board. We have made progress with all of these, but there is still some way to go and some aspects of the system are particularly concerning. Despite the numbers of children detained being at a record low, the number of restrictive physical interventions and self-harm incidents in the secure estate have both risen in the last year. Responsibility for children in custody sits with the Youth Custody Service (YCS), but we are doing what we can to help them keep children safe. YJB Board members are lending their expertise to the YCS and are helping them to drive the improvement that is needed. The joint thematic inspection on resettlement work3 published by HM Inspectorate of Prisons and HM Inspectorate of Probation in August 2019 showed that there is still more to be done to improve the outcomes for children leaving custody. We agree, and throughout the year have promoted the use of a ‘constructive’ resettlement approach and used our influence to bring together key stakeholders to identify solutions to this issue. There remains a disproportionately high number of children from black, Asian and minority ethnic (BAME) backgrounds in the system, particularly black boys. A child’s ethnicity should play no part in their experience of the youth justice system. We included this in our strategic plan4 and have engaged in a programme of work to help reduce disproportionality as well as improve transparency and trust in the system. Sadly, our Youth Advisory Network tell us that violence remains one of the biggest fears for children and reasons for carrying a knife. In the past year we have supported youth offending teams through additional funding to tackle serious violence. We have encouraged the sharing of good practice and the trialling of innovative approaches. We have shared data and experiences and will continue this approach in future.
1 https://www.gov.uk/government/statistics/youth-justice-statistics-2018-to-2019 2 https://www.gov.uk/government/publications/yjb-business-plan-2018-to-2019 3 https://www.justiceinspectorates.gov.uk/hmiprisons/inspections/youth-resettlement-work-interim-report-into-work-in-custody-october-2018- april-2019/ 4 https://www.gov.uk/government/publications/youth-justice-board-for-england-and-wales-strategic-plan-2019-22
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Two of our Board members stood down during the year, Mairead Healey and Sir Alan Wood. We wish to thank them for their contributions and wish them both well. In March 2020, Charlie Taylor’s tenure as Chair came to an end. I would like to extend my gratitude for the passion, challenge and expertise he brought to this role. On 14 April 2020, the Secretary of State announced the appointment of Keith Fraser as Chair of the YJB for a period of three years. It is important to acknowledge that, in the last three weeks of the 19/20 reporting year, the YJB, like the rest of the country, had to respond to COVID-19. This resulted in us moving to a remote operating model and providing additional support and leadership to the sector. We established the impact on services and represented the needs of children and the sector across government. This was the start of a challenging period and I am proud of the YJB’s response as well as the actions of those who work tirelessly to support children in the youth justice system. Date: 10 September 2020
Colin Allars Chief Executive and Accounting Officer
6 1
Performance report 2019/20
• Overview • Performance analysis • Our work Annual report and accounts 2019/20
Overview
This section of the report provides an overview of the Youth Justice Board for England and Wales (YJB) including: • who we are and what we stand for • the Chief Executive’s review of the year and our financial performance • our principle plans and risks for the future. It concludes by looking at how the youth justice system performed and what we did within the year.
Who we are and what we stand for The YJB for England and Wales is an independent non-departmental public body established by the Crime and Disorder Act 1998. We are appointed by the Secretary of State, and we are responsible for overseeing the operation of the youth justice system and the provision of youth justice services. We are the only statutory body to have oversight of the whole system. We work with partners with the aim of preventing offending and reoffending by children under 18 years old. Through our oversight of the system and the advice we provide to ministers and the sector we aim to improve the safety of children within the youth justice system who find themselves in those circumstances, and help children achieve positive outcomes to lead them towards a successful and productive adulthood. Our partners include, but are not limited to: • local authorities and youth offending teams (YOTs) • police forces, police & crime commissioners and mayoral offices • children’s services, and their partners i.e. health, education, police and the probation service • the Youth Custody Service (YCS) • government departments, including the Welsh Government, that are responsible for services and policy which impact on the youth justice system • inspectorates and representative bodies • academics • voluntary and third sector partners • membership bodies and charities.
Summary of our functions As a statutory body, we have a number of functions that relate to youth justice. These include: • monitoring the youth justice system • advising ministers • commissioning research • identifying and promoting good practice • making grants • publishing information • providing IT-related support • supporting system improvement.
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Our vision In May 2019, following a review by the Board, we published our revised vision set out below: A youth justice system that sees children as children, treats them fairly and helps them to build on their strengths so they can make a constructive contribution to society. This will prevent offending and create safer communities with fewer victims. As an independent public body with responsibility for monitoring the youth justice system, we gather information and assess its effectiveness. We aim to form an expert view of how the system can prevent offending and deliver the best outcomes for children who offend and for victims of their crime. We also revised our strategic approach which for the first time set out clearly, who we are and what we stand for. Our work is guided by a ‘child first’ principle, which puts children at the forefront of all our work. We are committed to this principle given the growing evidence that this approach is effective in preventing offending and reoffending, and offers children the support they need. We want to fulfil our vision by working towards our whole-system aims. These aims are as follows: • reduce the number of children in the youth justice system • reduce reoffending by children in the youth justice system • improve the safety and well-being of children in the youth justice system • improve outcomes for children in the youth justice system.
Our work This year, our work continued to focus on the set of priorities originally identified in 2018. We believe they have an enduring importance to the current system and that will enable us to achieve progress using our influence and convening powers. Our Board set an ambitious programme of work to deliver better outcomes in these areas. See ‘our work in 2019/20’ on pages 18-29. In order to support our work plan, we have reviewed our resources to enable us to maximise our capability to deliver our work and enhance how we fulfil our statutory obligations. We will continue to embed this approach as we move into 2020/21, and alongside our revised strategic business objectives, we will identify how we can better maximise the resource and support we provide to the frontline. This approach will enhance and support the structure that was put in place from 1 August 2018, which saw the YJB move towards: • a flexible and agile workforce committed to a child first approach • an operating model serving the youth justice system in both England and Wales • enhanced accountability in the delivery of the organisation’s strategic objectives • flexible staff deployed according to business priorities, skills, knowledge, behaviours and/or development need • an enhanced join-up of youth justice – enabling colleagues in the community, secure settings, commissioning and policy to work more effectively together • effective and transformational leadership to support operational delivery • resilience through change leadership, engaged people, effective systems and processes.
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Child first We continue to champion our child first approach which sees those in the system as children first. This means that all youth justice services will: 1. Prioritise the best interests of children, recognising their particular needs, capacities, rights and potential. All work is child-focused and developmentally informed. 2. Promote children’s individual strengths and capacities as a means of developing their pro-social identity for sustainable desistance, leading to safer communities and fewer victims. All work is constructive and future-focused, built on supportive relationships that empower children to fulfil their potential and make positive contributions to society. 3. Encourage children’s active participation, engagement and wider social inclusion. All work is a meaningful collaboration with children and their supporters. 4. Promote a childhood removed from the justice system, using pre-emptive prevention, diversion and minimal intervention. All work minimises criminogenic stigma from contact with the system. Our child first approach is inherent in all that we do, given the benefits that can be brought to the children, communities and the criminal justice system by this way of working. It informs our decision-making and engagement at all levels. During 2019/20, we have developed a programme of work to build staff capability and understanding of this guiding principle. We have aligned the work of our various stakeholder fora to the aims of the child first approach, ensuring that we continue to seek, listen and to capture the views and opinions of children who have experienced the youth justice system, and those who support them, and that our stakeholders are aware of, and able to contribute to this approach. This will help deliver a youth justice system that works for children and is informed by children. We have begun building this approach into the way that the YJB can influence and shape government policy, for example, every document published by the YJB should now align to our child first approach. In Wales, our Child First approach was central to our expert advice on the operation of youth justice in Wales. This resulted in Welsh Government publishing the Youth Justice Blueprint for Wales, which aims to embed rights-based and trauma informed practice in Wales. Further; it was key to our influence on policy development of the proposed amendments to the Local Government and Elections (Wales) Bill. The Bill will extend voting rights, in prescribed elections, to 16 to 17-year-olds. The advice we provided the Welsh Assembly, Children, Young People and Education Parliamentary Committee was instrumental in securing the same voting rights for Welsh children in custody. This was a positive outcome as it was recognised that children in the secure estate should be given the same social capital as children in the community and not disadvantaged as a result of their offending. While the decision has since been taken by the Welsh Government in reviewing its legislative programme, due to unprecedented circumstances of the pandemic, not to commit to the proposed stage two amendment, we will continue to use our influence to highlight the importance of providing equality of opportunity for children in the secure estate. Over the coming year, we will develop this further to make sure that we are working towards a truly child first focused system which prioritises children’s best interests, through: • promoting their potential and capabilities • encouraging their engagement • minimising the stigma and damage that being involved with the youth justice system can bring.
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Enhancing the work of the Youth Justice System Oversight Group and Wales Youth Justice Advisory Panel Following the creation of the Youth Justice System Oversight Group, we continue to bring together partners across English and Welsh governments and representatives from key youth justice delivery services. We have considered the performance of the youth justice system against our four youth justice system aims (page 9). During this year, we have worked to identify how the Oversight Group can work better as a collective, in the delivery of better outcomes for children in the system. We have undertaken an exercise to identify and develop strategic opportunities and will continue with this work into the next year, to maximise collaboration and deliver tangible improvements for children and victims. In Wales, we have strengthened our whole system oversight of the youth justice system through the re-purposed Wales Youth Justice Advisory Panel (WYJAP).
Consultations and inquiries We regularly respond to consultations and inquiries where there is an impact on the lives of children in, or at risk of, entering the criminal justice system. Between April 2019 and the end of March 2020, we responded to 26 consultations and inquiries.
Advising ministers We provided advice to ministers, drawing on intelligence and expertise from across the system to support understanding of the youth justice system and inform decision-making. This advice has covered: • performance of the youth justice system as a whole and the individual components of the system • funding for youth justice services • initiatives aimed at improving performance • youth justice priorities. We have also used our expertise to inform cross-government policy development, for example, on serious youth violence. We have begun to look at the impact of our advice, and how we may use our oversight of the whole youth justice system to advise other key stakeholders. We will develop this approach, going into the next year to ensure that our intelligence and information can be better utilised, and our advice function maximised.
Influencing and engaging with strategic stakeholders Since April 2019 we have extended both the reach of our stakeholder network and the mechanisms by which we offer engagement. This includes: • regular stakeholder fora across a range of key audiences, including a national network for children and young adults • putting into practice our strategic forward look and briefing system • building a virtual network for external stakeholders to continue conversations outside of committee meetings • improving our suite of tools to support our engagement.
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Financial review Our 2019/20 net operating expenditure of £84.4m represents a decrease of £1.7m (2.0%) compared to 2018/19. This is mainly due to decreased ICT expenditure and corporate recharges by the Ministry of Justice. Our expenditure included grants of £72.1m (85.4% of total net expenditure) paid to YOTs across England and Wales, which represents a 0.7% increase compared to £71.6m paid in 2018/19. This was mainly due to a proportion of our funding being used on targeted pathfinder initiatives across the youth justice system to address significant challenges, aligned to our priorities.
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How we spent our money
Expenditure on administration Staff £3m Other £2.2m non staff £0.8m
Net expenditure
Depreciation £84.4m and Staff Amortisation £3.3m £1.4m
Expenditure on programmes Income Other £0.1m £80.2m non staff £1.3m
Grants to IT local authorities £3.2m £72m
More detailed information about expenditure during the year can be found in the financial statements section of the report on pages 32-61. Risk management is embedded in the way we plan and operate. More detailed information about the framework, and the principal risks managed during 2019/20 can be found in the governance statement on pages 37-47. The overall risk to our objectives has reduced from ‘high’ to ‘medium’ over the last 12 months. Our risks are being reviewed as a result of COVID-19. The pandemic has introduced new risks which we will continue to monitor and report against as we move through the recovery stages of the pandemic. The key risks to the delivery of our vision and mission have been managed through our strategic risk register. The highest scoring risks are summarised on pages 44-46 under ‘risk profile’.
Other obligations The YJB is exempt from preparing a sustainability report under the Greening Government Commitments.
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Performance analysis
The YJB collects and analyses a range of data with a particular focus on: • reducing first time entrants (FTEs) to the youth justice system • reducing the use of custody • reducing reoffending5. The graphics used in this section summarise the performance of the youth justice system in 2018/19; the 2019/20 data is still being prepared for publication in January 2021. The YJB distributes the youth justice grants to all youth offending teams (YOTs) in England and Wales and this information is published via our site on GOV.UK separately.6
Summary
Children given a caution Knife and offensive or a sentence weapon offences
19% 1%
Overall, the number of children cautioned or sentenced, as FTEs or reoffenders, has continued to fall. This reflects, in part, efforts across a range of agencies to divert children from entering or staying in the criminal justice system. The number of knife and offensive weapon offences committed by children decreased by 1% in the year ending March 2019. Whilst this was the first decrease seen since the year ending March 2015, the challenge remains to continue to decrease the number of children carrying and using knives. Other challenges also remain. The proportion of children cautioned or sentenced for violent offences increased by 1.1 percentage points in the year ending March 2019.
5 In Wales the YJB also monitors and works to improve performance for outcomes in four areas of service devolved to the Welsh Government. These relate to education, mental health, accommodation and substance misuse. 6 https://www.gov.uk/government/publications/youth-justice-board-funding-to-yots-year-ending-march-2020
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Of all proven offences in 2018/19, 7% were under the YJB operational definition of Serious Youth Violence (SYV) (drugs, robbery or violence against the person with a ‘seriousness’ score7 of 5-8). Furthermore, the proportion of children from a black, Asian and minority ethnic (BAME) background continued to increase, by 0.5 percentage points for all children in the youth justice system (to 27%) and 3.5 percentage points for those in custody (to 49%). In addition, black children were still over four times more likely to be arrested and over three times more likely to receive a caution or sentence than white children. The graphics below refer to data for year ending March 2019 compared with the year ending March 2018. The demographic make-up of children cautioned or sentenced is illustrated below8. It shows that around 21,7009 children received a caution or sentence in the year ending March 2019. This was a 19% decrease from the year ending March 2018 and an 80% decrease from the year ending March 201010. This highlights the continued reduction in children receiving these outcomes. Over the past ten years the proportion of girls in the youth justice system has been decreasing. In the year ending March 2019, this proportion was 15%, a decrease of 0.6 percentage points on the previous year. In the year ending March 2019, 27% of children in the criminal justice system were from a BAME background. This proportion has been increasing over the past ten years with a 12.7 percentage point increase from the year ending March 2010 and a 0.5 percentage point increase from the year ending March 2018.
15% 23% girls* 21,700 aged 10-14 children 85% cautioned or sentenced boys* 77% aged 15-17
27% 73% Black, Asian, minority White* ethnic*
*Proportions are based on where ethnicity/gender is known
7 A ‘seriousness’ score is allocated to each offence and ranges from 1 (least serious) to 8 (most serious). 8 Proportions based on known gender and ethnicity. 9 Rounded to the nearest 100 10 Ethnicity data on children cautioned or sentenced is not available before the year ending March 2010
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First time entrants There continues to be a long-term fall in the number of FTEs to the youth justice system11,12. In the year ending March 2019, there were around 11,900 FTEs; a fall of 18% when compared to the previous year (year ending March 2018). This was the largest year-on-year fall since the year ending March 2015. This reduction may be attributed to the work of the police, YOTs and other partners. This includes targeted youth crime prevention schemes and diversion of children away from the criminal justice system through measures such as restorative justice and triage schemes. Children from a BAME background accounted for 25% of FTEs13 in the year ending March 2019. This proportion had been increasing for five consecutive years but remained stable in 2018/19. This is despite the overall number of FTEs from a BAME background decreasing by 21% in the year ending March 2019. The average age of FTEs to the youth justice system was 15.3 years in the year ending March 2019, an increase of 0.1 from the previous year.
First time entrants
18%
11 A first-time entrant (FTE) is a child who has received their first caution or conviction for an offence processed by a police force in England or Wales, including the British Transport Police. Other sanctions given by the police are not counted. 12 See Youth Justice Statistics for the year ending March 2019, available online at: https://www.gov.uk/government/statistics/youth-justice- statistics-2018-to-2019 13 Where ethnicity was known.
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Use of custody A custodial sentence is sometimes the ren n c to most appropriate response to a proven offence, but it should be a last resort for children. Early intervention can reduce offending with less cost than custody and better outcomes for the children concerned. In the year ending March 2019, there was an average of just under 860 children 12 in custody at any one time14. This is a emands decrease of 4% in the custody population when compared with the previous year (year ending March 2018). However, the average number of children held on remand has increased by 12% during 2018/19, so that children on remand made up 28% of all children in custody. This highlights Custody that more needs to be done to reduce the number of children held on remand. BAME children accounted for almost half (49%) of the custody population, an increase of 3.5 percentage points from the previous year, as well as making up over half (57%) of all children on remand. In the latest year, just under 1,300 immediate custodial sentences were given to children. This was a decrease of 19% from the previous year (year ending March 2018). These made up 7% of all sentences given to children, the same as the previous year. This compares to about two thirds (66%) which were community sentences such as Referral Orders and Youth Rehabilitation Orders and about a quarter (27%) which were other non-custodial sentences such as discharges or fines.
14 The youth custody population has continued to fall since the year ending March 2019, falling to 614 children in May 2020 (although this should be considered in the context of the COVID-19 pandemic). More up to date custody population figures are available here: https://www.gov.uk/government/statistics/youth-custody-data.
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Reoffending The long-term decreases in the number of children in the reoffending cohort15 have continued. This reflects the shrinking number of children in the criminal justice system who have re-offended and the reoffences they commit.
Children who Reoffences Children in have reoffended the cohort -20% -15% -15% to to to 10,900 44,100 28,400
For the annual aggregated cohort from the year ending March 2018, the proportion of children who have offended Reoffending rate is down in the cohort who went on to reoffend within 12 months (binary rate) was 38.4%. This represents a decrease of 2.5 percentage points when compared with the previous year, and was the largest year-on-year decrease in the past ten years. However, those children who did reoffend committed more reoffences on average, with an average of 4.05 reoffences each (frequency rate) from the year ending March 2018 cohort, the highest average seen in the last ten years. This was an increase of 3% compared with the previous year, 2.5pp** with the frequency of reoffences per reoffender increasing year-on-year since the year ending March 2013. Despite falls in the proportion of children who reoffended, the levels are still relatively high. The evidence shows that despite more children being diverted from low-level crime, there were some that had more previous offences which correlates with a higher risk of reoffending. The average number of previous offences per child had risen to 3.85 (an increase of 4%) for the cohort year ending March 2018 with year-on-year increases seen since March 2015. +3% Reoffences per child who has reoffended
15 A child enters the reoffending cohort if they receive a caution, a non-custodial conviction at court or were released from custody during the cohort period. The cohort period referenced here is the annual aggregate of the four quarterly cohorts for the year ending March 2018.
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Our work in 2019/20
In our previous Strategic Plan (2018-202116) the YJB set out seven priority areas on which we would focus our work. During 2018 we restructured our resource and established a programme of work, the Priorities Programme, to deliver those priorities. That programme of work is now firmly established with a clear plan of projects and activities to address the priorities and strong governance in place covering the start-up, delivery and evaluation of all activities. An updated Strategic Plan was published in May 2019 (covering the period 2019/202217) which also updated our programme approach. This provided a clear focus on making meaningful, sustainable improvements for children, where we can have the most impact on improving the outcomes for children under the child first principle. The Priorities Programme coordinated this work against our seven priority areas across the YJB through 2019/20. The programme strategy utilises all areas within the YJB to maximise achievements within the priorities and take a holistic approach. We have several activities and objectives that will deliver against the priorities and lead the way in encouraging sector-led improvement and improving the practice of youth offending services through promoting innovation and improving performance. The Priorities Programme for 2019/20 addressed: • improving local practice (ILP) • the establishment of pathfinders • resettlement and transitions between services • safety and education in custody • secure schools • the disproportionate representation of children from some BAME backgrounds in the youth justice system • serious youth violence reduction, including children exploited through “county lines” activities.
Pathfinders In order to deliver against the priorities set out in our Strategic Plan, we developed a series of ‘pathfinders’ linked to some of the priorities. We targeted funding to support the delivery of these pathfinders through YOTs and their partners, to benefit local services and the children who receive these services. In targeting funding on our priorities whilst at the same time releasing additional money to frontline services to address significant challenges we can make a real difference to children’s lives. Pathfinder funding will help services to innovate and share practice and support the youth justice system to deliver sector-led improvement. This in turn will improve local practices through the dissemination of effective and/or innovative ways of working. A high-level programme of work covering the life span of each of these pathfinders is developed and we are ensuring that dissemination opportunities to benefit the wider sector are available as soon as is possible, with some delivered already. The pathfinder projects are aligned to our priority areas and we chose to mobilise pathfinder activity against the following areas: • constructive resettlement • reducing serious youth violence (SYV) • reduce children exploited through “county lines” activities • the disproportionate representation of children from some BAME backgrounds in the youth justice system • ILP
16 https://www.gov.uk/government/publications/youth-justice-board-for-england-and-wales-strategic-plan-2018-21 17 https://www.gov.uk/government/publications/youth-justice-board-for-england-and-wales-strategic-plan-2019-22
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An update on each of these pathfinder areas is provided below: e) Pathfinder: constructive resettlement – On 2 August 2019 the South and West Yorkshire Resettlement Consortia agreed to be our constructive resettlement pathfinder. Following appropriate governance processes the grant was signed off by the Ministry of Justice (MoJ). One of the first steps was to ask them to test a gap analyses tool we had developed. This tool was designed to determine what changes needed to be considered to deliver the desired outcomes around the constructive resettlement priority. The constructive resettlement pathfinder has worked with our priority lead and Board champion on how to put into practice the identity shift elements of our constructive resettlement vision. They have produced the initial training and dissemination material to introduce the concept of an identity shift and build on their previous work as a resettlement consortia. The pathfinder has offered initial support to the London Resettlement Partnership to share practice and aid their thinking around resettlement support across London. They have liaised with YJB colleagues in Wales to assist with the development of the Welsh Blueprint. They have presented to YOTs and secure estate colleagues at our Resettlement Local Service Improvement forum and at the launch of the West Yorkshire Violence Reduction Unit to share their resettlement expertise and their developing work around identity shift. As the COVID-19 crisis developed, the Pathfinder was quick to consider the implications for delivery. They began working closely with YOTs and the secure estate to prepare children for resettlement into a wholly changed and unfamiliar community. They are developing release guidance in relation to the COVID-19 national emergency which will be produced and shared early in the 2020/21 delivery year. The following YOTs have been announced as part of the pathfinder for constructive resettlement: Barnsley, Bradford, Calderdale, Doncaster, Kirklees, Leeds, Rotherham, Sheffield, Wakefield. The YJB have provided these YOTs with direct funding through Leeds City Council as financial lead. The pathfinder YOTs work in close alignment with secure estate and wider partners on how to make resettlement constructive and sharing this practice with others across the sector. f) Pathfinder: reducing SYV – Data analysis and local intelligence indicated that Newcastle upon Tyne is an area with unusually low levels of SYV, particularly for a core city. Newcastle upon Tyne YOT is working with researchers from Northumbria University to explore why their rate of SYV is so low compared to their statistical comparators, identify the underlying factors driving this, including effective practice, and share these findings with the wider youth justice sector to inform practice in other areas. g) West Midlands – At the beginning of March 2020, we approved a pathfinder to work with the YOTs within the West Midlands Combined Authority (WMCA) area and their Violence Reduction Unit. It is anticipated that, this pathfinder will commence at the start of the 2020/21 financial year. This will aim to create and facilitate community based, parental peer support networks across the West Midlands that can be accessed by parents with children known to have, or be at risk of having, involvement with the youth justice system. Like all pathfinders this practice will be shared with others to benefit the wider sector. h) Pathfinder: SYV reference group – We previously identified the local authorities with persistently high levels of SYV and created a reference group. We have funded 11 YOTs from this SYV reference group who submitted proposals for different projects to be delivered in the 2019/20 financial year aimed at tackling SYV under this pathfinder initiative. This funding is in addition to small grants we issued in 2018/19 to support SYV projects. The projects are all delivered by YOTs who experience the highest levels of SYV according to the YJB definition and are also included in the SYV Network. The pathfinders will start disseminating the learning to the SYV network later this year (2020).
20 Section 1 Performance Report 2019/20
i) Pathfinder: county lines18 – We analysed National Crime Agency (NCA) data to identify those areas which have the most acute challenges and used local intelligence to select YOTs who were already developing practices to combat county lines and who could work effectively together. The chosen area was primarily looking at the challenges from the importing versus exporting of county lines activity. As a result, we funded Essex, Norfolk, Cambridgeshire and Suffolk YOTs over three years to develop and disseminate effective practice to reduce the number of children involved in, or being exploited by, county lines activity. Norfolk County Council are in place as the financial lead. Each of the four YOTs has provided a project plan aiming to develop and disseminate good practice. They have a team of five people, across the identified YOTs, now in post. An evaluator has been appointed to provide ongoing evaluation for the duration of the pathfinder. j) Pathfinder: disproportionality – For pathfinders covering disproportionality, we have identified areas in the journey of children through the criminal justice system where the pathfinder approach can help to innovate practice and reduce disproportionality. This year we explored how we could have a positive impact on courts and the police. We reviewed our progress and considered the areas of focus we want to work on in our 2020/21 business plan. k) Pathfinder: ILP – The ILP pathfinder has focused on out of court disposals and effective assessment of children. East Riding of Yorkshire Youth Offending Service have delivered two events in London on their out of court disposals, and one event in Manchester, validated by an outstanding judgment in their HMIP Inspection. 132 people representing YOTs and police have attended these events. Cheshire YOS will be delivering similar events in the new financial year focused on their diversion programme. They have developed a training programme on the ‘divert’ process. We continue to explore options with other services and local authorities to disseminate effective practice around early intervention and out of court disposals. The total amount paid in 2019/20 for all pathfinders was £686k as follows: £295k on SYV reference group pathfinder, £40k on reducing SYV Pathfinder (Newcastle), £240k on county lines pathfinder, £102k on a constructive resettlement pathfinder, and £9k for pathfinders focused on early intervention of children in contact with the youth justice system. To date 26 YOTs will directly benefit from this funding with others benefitting from the learning generated.
Projects and other activities to deliver our priorities Enhanced Case Management (ECM) Aligned to our ILP priority, we have supported two projects to develop ECM, one in Wales and one in South West England. ECM is an approach to trauma-informed practice which utilises the expertise of a psychologist to assist practitioners to deliver and sequence interventions according to a child’s developmental needs. The project in South Wales was developed with the support of the Welsh Government, the all Wales Forensic Adolescent Consultation Treatment Service, South Wales Police and Crime Commissioner and Public Health Wales. The latest three-year ECM trial in the South Wales Police area ended in March 2020 following its initial trial in three YOTs in Wales. Results of an independent evaluation are expected in the Summer of 2020 and a suite of materials to disseminate to the sector will then be made available. Learning from the two ECM trials over the last six years provides the bedrock for establishing trauma-informed practice across youth justice services in Wales, taken forward under the auspices of the Welsh Government and Ministry of Justice Youth Justice Blueprint. The YJB will continue to lead these elements of the Blueprint in Wales and the ECM pilot in the South West of England.
18 https://www.nationalcrimeagency.gov.uk/what-we-do/crime-threats/drug-trafficking/county-lines
21 Annual report and accounts 2019/20
Assessment AssetPlus is the YJB’s approved, integrated assessment and planning framework, providing YOTs with a comprehensive means of developing their engagement with children. The information is then easily shared between colleagues within a YOT, transferable to other YOTs and also between secure establishments, thereby providing an end-to-end process. We have supported St Helens YOT to disseminate its ‘More for Less’ programme to 135 YOTs. These workshops supported case managers to consider a ‘less is more’ approach to information gathering in a way that is timely, whilst also maintaining quality assessments. The approach was delivered via a series of sector-led workshops by St Helens YOT throughout 2019 across England and Wales. In alignment with our ILP priority area, we are piloting alternative assessments to AssetPlus through our Partners in Practice work. We are collaborating with the Department for Education on their Partners in Practice approach to developing innovative practice with local authorities. This includes evaluating the impact of alternative assessment models to that of AssetPlus, enabling us to compare and contrast the efficacy of a variety of assessment and planning options. This is a key element of our review of our overall assessment and planning strategy for YOTs. AssetPlus Phase 3: secure estate - YOT data transfer and YOT to YOT data transfer This project incorporated two separate areas of work that aimed to improve the electronic sharing of AssetPlus.19 Secure estate to YOT and YOT to secure estate data transfer This is the completion of the end to end transfer of AssetPlus information from YOTs to the secure estate and the secure estate to YOTs. It allows YOTs to receive AssetPlus stages from the secure estate when a child enters custody, has a review, or in preparation for release. One of the four case management system users can receive and send AssetPlus stages to and from the secure estate into their systems. Secure estate users can send and receive AssetPlus stages into a YOT case management system. Effective business change was planned and delivered through communication, guidance and provision of training materials for both YOT and secure estate staff. In addition, a process was developed for resolving disputes by allowing acceptance or rejection of stages. Work is ongoing to extend this process to the three remaining case management suppliers. YOT to YOT Data transfer This allows YOTs to send and receive a full AssetPlus case transfer when responsibility for a child transfers between local authorities. Servelec YOT case management system users can now use this process and work is ongoing to extend this process to the three remaining case management suppliers. Out-of-court disposals Our response to this workstream was in two phases. We first reviewed existing practice with representatives from the youth justice sector and revisited our own guidance documentation. Additionally, we explored options to increase efficiencies related to out-of-court disposals, collaborating with HMI Prisons and Probation. We collaborated with the National Offender Management Agency Data Sharing Systems (NOMADS) Home Office project to automate out-of-court disposals communications between police and YOTs. We have also been working with YOTs, offering practical and financial support through our pathfinder approach with a view to developing and disseminating out-of-court disposal practice across England and Wales. In Wales, the YJB is a member of the Wales Violence Prevention Board of strategic partners, established to deliver a public health approach to tackling crime, including trauma-informed policing.
19 https://www.gov.uk/government/publications/assetplus-assessment-and-planning-in-the-youth-justice-system 22 Section 1 Performance Report 2019/20
Development of trauma-informed transitions guidance with the National Probation Service in Wales and Early Action Together The YJB worked with the National Probation Service in Wales, Early Action Together (a multi-agency partnership developing responses to adverse childhood experiences) and representatives from the community and secure estate to produce guidance on trauma-informed transitions. This is now available through the Youth Justice Resource Hub.20 Resettlement & Transitions Having launched our ‘How to Make Resettlement Constructive’ vision in September 2018, we have followed a twin track approach. Firstly, trying to address barriers to resettlement, such as reporting to the Cabinet Office on accommodation practice and addressing how children leaving custody can open a bank account or claim benefits. Secondly, we have supported local authorities implementing new approaches including through the resettlement pathfinder. Increasingly, our focus is on helping the resettlement pathfinder become an exemplar of practice which we can disseminate to others. We continue to work with and support the YCS around constructive resettlement in addition to local authorities. e.g. inputting into the YCS case work review. Data Quality Improvement The YJB Information & Analysis Team worked to incorporate additional data into our internal Performance Oversight Board (POB) Data Workbook. The data held at YOT-level capturing reoffending rates for children released from custody has now been made available to the POB, which considers data against national justice indicators (first time entrants, proven reoffending and the use of custody). This information allows greater understanding of YOT performance in relation to resettlement. Higher numbers of children reoffending upon release from custody indicates possible “poor” outcomes for children. The POB workbook has recently been amended to include two important indicators for resettlement: reoffending from custody and accommodation status at the start of the licence period. The YJB is also represented at the National Partnership Board21 between the MoJ and The Department for Work and Pensions (DWP) and have successfully increased the visibility of the needs of children in relation to benefits. Local Service Improvement (Working Group) This project has brought together practitioners from across the youth justice system. Regular attendees include colleagues from YOTs, secure children's homes (SCHs), young offender institutions (YOIs) and academics. Presenters include both HMI Prisons and HMI Probation, the Howard League, Digital Justice and the NHS. This working group is different to a 'developing practice group' in that attendees come together to discuss, debate and identify solutions to common barriers and obstacles to constructive resettlement. The work from this group has gone on to inform the constructive resettlement pathfinder and the rewrite of case management guidance. Accommodation Report to Cabinet Office Resettlement and transitions between services is a priority for the YJB. The Cabinet Office made the initial request for a report to allow them to better understand the accommodation issues faced by children upon release from custody. To provide a clearer picture of the issues a small exercise of discovery was undertaken with 21 YOTs in England and Wales in January 2019. The results were collated and presented in a report to the Cabinet Office. Banking This project focused on removing barriers currently faced by children and the supervising YOT in opening a bank account on release, where the child may not be able to provide the necessary identification. Bank accounts are vital in enabling children to claim benefits or to enable payment of wages and laying the
20 https://yjresourcehub.uk/ 21 A senior group of MoJ and DWP officials who meets quarterly to ensure that those in contact with the justice system are supported to claim benefits and access work opportunities.
23 Annual report and accounts 2019/20
foundation for the financial security necessary to move forwards in their lives. The project successfully delivered a mechanism by which children can meet the identification requirement to enable them to open a bank account.
Safety and education in custody Review of the YCS planned improvements to safety and education in secure settings The project aims to develop a clear understanding of the YCS’s Youth Justice Reform Programme (YJRP) and assess whether sustainable improvements to safety and education within secure settings will be achieved.The YJB has reviewed and compared the YCS’s current YJRP Implementation Plan with the full YCS delivery/implementation plan which identified a gap analysis comparing the government’s response to the youth justice review against the YJRP implementation plan. The YJB is strategically engaged with both the YJRP Project and Programme Boards (through the YJB Chair and CEO/COO). Safety in custody We have worked closely with the YCS to develop a clear understanding of their Youth Justice Reform Programme and have provided regular advice to ministers on the secure estate. While we have completed the activities set out in the programme of work, and this is now being managed as YJB ongoing business, levels of safety show little improvement, and we continue to offer the YCS any support they wish to take up. On education, there is limited programme activity, instead the Chair, Charlie Taylor had offered advice to the MoJ on procurement of new YOI education contracts and YJB Board member Sharon Gray offered advice to Oakhill Secure Training Centre. Our future strategy is to provide any support we can on the resettlement elements of education in the pathfinder area. We have engaged in complex case panels to bridge communication between secure establishments and individual community services in support of the safety and wellbeing of children. Secure Schools We continue to work with the MoJ and YCS to facilitate the development of the first secure school and to unblock any barriers.
BAME Disproportionality BAME measures of success A dashboard for the disproportionality project has been developed to assist the YJB in tracking progress against a set of measures against the BAME priority. This will inform our journey of the child presentation materials that explore racial disparity in the youth justice system, which will be used for external stakeholders and challenging organisations on the ‘explain or reform’ proposal within the Lammy review. This project has now been completed, and the materials were well received since being published on GOV. UK accompanied by an article by Board champion Keith Fraser. It was also promoted in a positive online article in Children and Young People Now magazine. Multiple updates were posted on Twitter, the content of which was rapidly re-tweeted showing a high level of engagement. Stop & search options (also part of SYV) As part of the YJB’s priority to reduce BAME disproportionality in the youth justice system, one of the priorities is to develop prevention and diversion methods. This includes improving diversionary access, preventing entry to the criminal justice system and focusing on the first point of contact with the police and arrest. This project is intended to develop an understanding of how stop and search is being applied to children and young adults. It assesses how the YJB can add value to work already being undertaken by the police to ensure a child centred approach is being applied consistently and fairly, particularly regarding the BAME community. The project discovered that a child centred and fair and consistent approach is being applied across stop and search systems.
24 Section 1 Performance Report 2019/20
Disproportionality We have published the revised Local Ethnic Disproportionality Tool to allow all YOTs to access and utilise data to address disproportionality in their areas and are seeking feedback on how it is used. The Alliance of Sport in Criminal Justice (AoS) working in partnership with the YJB has secured up to £1 million from the London Marathon Charitable Trust to deliver a ground breaking initiative aimed at using the power of sport and physical activity to engage and improve health and life outcomes for over 11,200 BAME children who are at risk of entering, or who are already disproportionately involved in, the criminal justice system across England and Wales. In this financial year, funding was secured and regional delivery networks are being set up in the selected areas. In the next financial year, in conjunction with our partners, we will be implementing and monitoring the delivery of the work directly to children via the Strategic Steering Group and sub-groups.
Reducing SYV Reducing SYV is a priority for the government and we have put considerable effort into supporting government-wide planning and delivery in addition to the pathfinder detail provided earlier. SYV Network We increased our activity to support additional YOTs who are experiencing high levels of SYV. The expanded group, which is referred to as the SYV Network, comprises 30 YOTs within the top quartile based on the YJB’s definition of SYV22. A launch event was held in December 2019 bringing all YOTs within the SYV Network together to share practice and discuss challenges. Further events are planned throughout 2020 and best practice and learning will be shared more widely across the youth justice sector via the Youth Justice Resource Hub and YJBulletin in due course. As detailed, we provided 11 YOTs from the SYV Network with additional pathfinder funding for the 2019/20 financial year. We have also worked to ensure that YOTs are included in the core membership of Violence Reduction Units in 18 regions across England and Wales. We continue to provide advice on the impact of upcoming legislation to address serious violence, making sure that ministers and other partners are aware of our view of the impact of these legislative and policy developments on children in the system. We also had the opportunity to take children along to subsequent summits hosted at 10 Downing Street by the Prime Minister, where they had an opportunity to inform attendees about their experiences of serious violence. As a result, we supported the government in the development of a Youth Advisors Forum to ensure policy development was informed by those with lived experiences. Self-Assessment Stocktake Toolkit We produced a self-assessment stocktake tool designed to enable YOTs to identify gaps and strengths in the work they are doing to reduce SYV. The stocktake tool has been informed by extensive stakeholder engagement, both internal and external, including both our Voluntary and Community Sector Forum and External Stakeholder Liaison Group. The stocktake tool was rolled out in two phases due to data reasons. The first phase was to the SYV Network at the launch event in December 2019 and the second phase to the remaining YOTs in February 2020. It includes the SYV data toolkit which is for YOTs only as it contains sensitive information – see below. SYV Data Toolkit Linked to the stocktake toolkit, the SYV data toolkit was developed for YOTs and contains a further breakdown of published data, and more recent provisional, management information. Demographic data is also available to each YOT and the toolkit is updated quarterly.
22 The YJB’s definition of SYV is violence against the person offences (which will encompass homicide and weapon offences), robbery and drugs offences which have a gravity score of 5 and above.
25 Annual report and accounts 2019/20
SYV Dashboard The SYV dashboard uses data that is publicly available from the local level tables in the Youth Justice Statistics and will be updated annually. It can be shared with external stakeholders and can be accessed on request. YJB police work Our police lead continues to work with the National Police Chief Council (NPCC), Association of Police and Crime Commissioners (APCC), Independent office for Police Conduct (IOPC), Her Majesty’s Inspector of Constabulary, Fire and Rescue Services (HMICFRS), College of Policing and police forces across England and Wales. He acts as a conduit between key stakeholders and youth justice services and works with partners to enhance the service offered to children within the youth justice system. Cross-government work Reducing SYV is also a priority for the government and we have put considerable effort into supporting government-wide planning and delivery. This includes contributing to three Prime Minister-led workshops and implementation of the cross-government action plan resulting from the April 2019 serious violence summit. We have continued to provide ongoing input on the development of this work, working with partners across government as needed. Our expert advice to Welsh and UK governments on the operation of youth justice in Wales, resulted in Welsh Government publishing the Youth Justice Blueprint for Wales, which was published on 21 May 2019. The blueprint seeks to establish trauma-informed and rights-based practice throughout the youth justice system in Wales. YJB leads the project board and has a key oversight role, in partnership with Welsh Government and HM Prison and the probation service. We have also worked with Welsh Government and other stakeholders to develop the following practice guides: • Safeguarding of Children at Risk of Criminal Exploitation • Safeguarding of Children at Risk of Harmful Sexual Behaviour Welsh Government intends to publish the guidance with the Wales Safeguarding Procedures in Autumn 2020. Oversight of the system and performance improvement Our quarterly POB considers a combination of our data analysis and soft intelligence regarding the operation of the system to assist in our governance and oversight of performance across the whole youth justice sector. The changes introduced to our oversight approach in 2018 were reviewed as planned, one year after the new system was embedded. This review was also informed by the lessons learnt from ‘priority’ areas where the performance of services had required YJB input and support. As an outcome of this review, the Board has agreed to further develop the approach to oversight, broadening the range of data and intelligence used to inform our performance oversight of the sector. This work will be carried forward in the coming business year. The following three sub-groups will now underpin the work we do on performance oversight, each having responsibility for monitoring: 1) pre-POB performance data analysis, 2) effective practice, 3) performance improvement work, where we continue to support and monitor those services where outcomes for children have raised concerns and improvement work is being undertaken. These groups will support the POB. This year, the POB developed further to include attendance by the YCS to support oversight of the secure estate; this has strengthened links between the YJB and YCS.
26 Section 1 Performance Report 2019/20
Alongside the work we have done to improve our oversight of the system, we continue to offer significant support and leadership to YOTs where we consider performance indicates a need. We facilitate oversight and improvement support and, importantly, promote sector-led improvement activity. The support and challenge offered to our ‘priority’ services, has enabled them to improve outcomes for children. There is an improved review of Youth Justice Plans and HMI Probation reports, and common themes are gathered from the findings of the national developing practice fora, enabling us to improve our oversight of performance issues, effective practice and emerging issues in the sector. In 2020/21, a significant piece of work will be the analysis of the new standards for children self-audits that the YJB have asked YOTs to undertake. Following the creation and implementation of practice deep dives in 2019/20, to enable us to take effective practice assessment to the sector, we have undertaken a full review of this process following the completion of three deep dives in 2019/20. In 2020/21 we will focus on our identification and understanding of effective practice. We will continue to use the Performance Oversight Board to agree the focus in each quarter, directed by a combination of YJB intelligence and YJ wider sector knowledge. Youth Justice Sector Improvement Partnership The Youth Justice Sector Improvement Partnership (YJSIP) continues to play a vital role across the sector improvement continuum. Building on the strong brand and proven track record, the sector-led improvement work continues to expand, supporting YJB priorities and sharing practice across the sector. The total funding for YJSIP in 2019/20 was £40k. We have supported the YJSIP and self-improvement activity for YOTs and youth justice partnerships across England and Wales. Now in its eighth year, YJSIP includes peer review, mentoring, coaching, operational manager training, bespoke peer challenge, peer validation, sector self-improvement tools and ongoing advice. Recommendations from Dr Kerry Baker and Dr Chris Magill’s independent evaluation of sector- led peer assessments in youth justice (published January 2019)23 were welcomed and have benefitted the YJSIP journey. Sector improvement initiatives through YJSIP have become a recognised and respected cornerstone of self-improvement activity in an increasingly mature youth justice sector. 2019/20 has seen sector improvement links with our pathfinders, notably YJSIP support to the SYV Network Group in relation to checklist validation, mentoring, coaching, bespoke peer support and peer review. Achievements in 2019/20 alongside carrying out peer reviews, have included an increase in the number of trained peer reviewers, trained coaches and mentors and several courses completed for Operational Managers. Going forward in 2020/21 we look forward to further growth and development of the sector improvement model across all domains. Investing in sector leaders through peer reviewer, leadership and coaching training and a second cohort of train the trainer Operational Manager training will increase resource and capacity within YJSIP. In addition, there is a proposal that YJSIP sector coaches support the YJB Positive Action Programme using the Youth Justice Degree Apprenticeship. Youth Justice Workforce Development Strategy The vision for the 2019/2021 Workforce Development Strategy was to develop further the professional youth justice workforce recognising their distinct specialist knowledge and skills as they engage with increasingly complex children who have offended. The Youth Justice Professional Framework now includes an Honours Degree and an Apprenticeship and is based on the core competences identified in the Youth Justice Skills Matrix. More than 600 practitioners have registered for the Degree and nearly 2,000 have completed the Youth Justice Effective Practice Certificate. There are a range of learning resources which support Youth Justice services from both the Youth Justice Resource Hub and the Youth Justice Institute and in 2020 the YJB has provided direct training for those
23 https://aym.org.uk/wp-content/uploads/2019/07/Peer-Review-Evaluation.pdf
27 Annual report and accounts 2019/20
who train panel member volunteers. New Effective Practice Awards which are short learning programmes are available through the Institute and these now include trauma-informed practice, desistance and relationship based practice. The Workforce Development Council comprising of representatives from the secure estate, community and voluntary sectors oversees and develops the strategy and disseminates information from and to the workforce. The new 2021-23 Strategy will be developed with the Council in the Autumn and embed 'child first' principles and build on the well-established Professional Framework. Securing funding to enhance training for YOT professionals in trauma-informed practice will bolster our workforce strategy and ensure that existing professional development continues as part of their professional development. Case management guidance We have undertaken a full programme of review of the case management guidance used by the sector. Each section of the case management guidance has been reviewed, re-written and tested on multiple occasions with a user testing group comprised of representatives from across the youth justice sector, including YOT workers from various disciplines and police. Feedback from the user testing group has led to a re-style of the guidance to make information easier to find. Regional practice development fora During 2019/20 we refreshed our strategy for delivering practice development. We sought to: • re-establish fora and delegate facilitators and chairs to support each region • engage a diverse range of stakeholders to share and disseminate key innovation and information on national issues to the sector. We met and surpassed the aims of the strategy and increased engagement of key YJB stakeholders and partners. This improved collaboration, the sharing of effective practice and enhanced the learning and experience for attendees. We have established regular quarterly delivery fora with strong attendance which enables us to maintain relevant contact with the sector. The increased engagement of YOTs has enabled delivery of presentations on local practice and the development of a ‘sector themes’ document to keep us informed of key and emerging issues. Going forward in 2020/21 we aim to: • continue to engage the sector to provide timely information sharing and assessment of the trends, issues and needs of children and young people in the youth justice system • broaden the scope of the fora through increased input to policy development, collaborating more closely with policy partners • proactively support the design, planning and content of MoJ policy consultations • further develop stakeholder engagement to provide access to a wide range of effective practice knowledge and partnership opportunities. Standards for children in the youth justice system The YJB retains its statutory function to advise the Secretary of State for Justice on national standards for youth justice services. The new 'standards for children in the youth justice system', focusing on outcomes rather than process, were introduced in April 2019. With implementation of the standards came a requirement from us for the sector to self-assess against both the strategic and operational aspects of the standards. The self-assessments were due to be submitted in June 2020 and will be moderated and validated by us and the connected Youth Justice Plan requirement (which has been suspended for the 20/21 year) for
28 Section 1 Performance Report 2019/20
action planning against the audit outcome. The process will identify gaps and actions necessary at a local level. YOTs will also be required to provide their action plan stemming from the self-assessment within the youth justice planning framework for their Youth Justice Plan from 2021/22 onwards. Information gathered from the audit returns will be used strategically by the YJB with our partners at a national level and to advise ministers on progress following implementation of the new standards. Hwb Doeth In Wales, the YJB has continued to strengthen Hwb Doeth; our Welsh national collaboration with Welsh Government, the Welsh Centre for Crime and Social Justice (a consortium of Welsh Universities) and youth justice services. It promotes practice improvement, research and the dissemination of practice in areas of common interest including child exploitation, realising ‘child first’ in practice and improving education outcomes for children. A key achievement has been the establishment of a growing network of partnerships between academia and practice across Wales. Strategic engagement with Welsh Government The YJB works closely with Welsh Government and other strategic partners in Wales to maintain the strong partnership ethos that enables the successful delivery of justice in Wales. YJB is a standing member the All Wales Criminal Justice Board bringing our influence to bear in the promotion of child first and trauma- informed practice. We provide expert advice at several Welsh Government (or ministerial) groups. We advocate for children in the youth justice system and raise awareness of the barriers they face to achieving their potential, including childhood adversity and trauma and disengagement from mainstream services. The groups we advise are: • The Ministerial Advisory Group on care-experienced children, chaired by David Melding AM, reporting to Julie James (Deputy Minister for Health and Social Services) to improve outcomes for children who are care-experienced or care leavers • Welsh Government’s Community Safety Programme Board, chaired by Jane Hutt (Deputy Minister and Chief Whip) to improve community safety in Wales. The group is working on a public health approach to strategic issues that affect community safety, including the criminalisation of children through county lines • Welsh Government sponsored, NHS-led Together for Children and the Young People Programme with the aim of improving emotional well-being and mental health services and support for children in Wales • Welsh Government/HM Prison and Probation Service Framework to support positive change for those at risk of offending. Sharing effective practice The YJB Communications team, alongside Dods24, organised the 2019 youth justice convention. The event brought together 550 attendees including youth justice managers and practitioners as well as experts and opinion formers across all sectors and types of youth justice provision. The event aids information gathering and debate about topical issues in youth justice. 82% of those who responded to the evaluation said their work in youth justice will improve as a result of attending the youth justice convention. Other communication activity during the year included the public promotion of progress towards our strategic objectives. This included a series of articles from our Board members on topics such as constructive resettlement, disproportionality and serious youth violence, which have been read more than 1,000 times. In addition, our fortnightly YJ Bulletin, which reaches more than 3,000 subscribers, supports the system to remain informed of youth justice news, opportunities and developing practice.
24 The YJB contracts Dods to run the youth justice convention. This contract lasts until 2021
29 Annual report and accounts 2019/20
Between May and August 2018, the YJB carried out interactive sessions in six areas across England to look closer at the Youth Justice Resource Hub. This was followed by a short online survey to gather knowledge and evidence around usability. This user research showed areas for improvement and in 2019, a £24,000 development budget was agreed for 12 months. This work started in 24 February 2020 and concluded on 31 March 2020. It involved making the ‘search’ function better and more intuitive, submissions easier to find and fewer clicks to get to content. The YJB also facilitated introductions for, or hosted, five international visits including: Belarus, Georgia, Japan and ministers from both government and opposition in Australia.
Signed on behalf of the YJB by
Colin Allars Chief Executive and Accounting Officer Date: 10 September 2020
30 2
Accountability report 2019/20
• Remuneration and staff report • Parliamentary accountability and audit report • The certificate and report of the Comptroller and Auditor General to the Houses of Parliament Annual report and accounts 2019/20
Accountability report
Corporate governance report This section of the report outlines our governance over 2019/20.
Board members and senior management The Crime and Disorder Act 1998 provides that the Youth Justice Board (YJB) shall be formed of between 10 and 12 members appointed by the Secretary of State. The Board members who served during the year were:
Name Role Date Started Date ended
Charlie Taylor Chair 18/03/2017 16/03/2020
Sir Alan Wood Board Member 21/04/2017 31/03/2020
Ben Byrne Board Member 01/01/2018 N/A
Chair of Finance, Audit and Risk Brian Tytherleigh* 01/09/2017 N/A Assurance Committee
Chair of the Performance Gillian Fairfield 03/10/2012 N/A Committee
Keith Fraser Board Member 01/01/2018 N/A
* Brian Tytherleigh acted as an informal Chair following Charlie's departure on 16 March 2020 until the appointment of Keith Fraser on 14 April 2020.
32 Section 2 Accountability report 2019/20
Name Role Date Started Date ended
Co-Chair of the Wales Youth Keith Towler 01/01/2018 N/A Justice Advisory Panel
Mairead Healy Board Member 01/01/2018 10/12/2019
Neil Rhodes Board Member 01/07/2013 N/A
Professor Neal Hazel Board Member 01/01/2018 N/A
Sharon Gray Board Member 01/01/2018 N/A
Biographies of our Board members are available online.25 We have adopted a code of practice for our Board members. The code, along with a register of members’ Interests, can be found on the biography page referenced above. Our Chair is responsible for appointing our Chief Executive, in consultation with the Ministry of Justice (MoJ).
25 The biographical details of the YJB’s Board members are available at: www.gov.uk/government/organisations/youth-justice-board-for-england- and-wales/about/membership#board-members
33 Annual report and accounts 2019/20
This year our Senior Leadership Group (SLG) consisted of the following people:
Name Role Date Started Date Ended
Colin Allars Chief Executive 13/07/2016 N/A
Director of Oversight and Paul Clarke 01/09/2018 22/04/2019 intelligence
Director of Innovation and Cheryl de Freitas 01/05/2019 N/A Engagement (England)
Director of Innovation and Lynzi Jarman 05/09/2018 N/A Engagement (Wales)
Director of Innovation and Lisa Harvey-Messina 01/09/2018 20/04/2019 Engagement (England)
Jonathan Pickles Senior Police Adviser 01/10/2018 N/A
Director of Evidence & Sophie Riley 23/04/2019 N/A Technology
Stephanie Roberts-Bibby Chief Operating Officer 05/09/2018 N/A
Director of Organisational Ann Skamarauskas 01/12/2016 N/A Development and Change
Martin Skeats Director of Programme Delivery 01/12/2009 N/A
Director of Strategy and Mairi Warrington 01/09/2018 N/A Planning
Director of Strategy & Planning Paula Williams 07/01/2020 N/A (Maternity cover)
Director of Strategy & Planning Catherine Worswick (on maternity leave until April 01/09/2018 N/A 2020)
34 Section 2 Accountability report 2019/20
A list of all Board and SLG members who were in post during the year is shown in the remuneration report on pages 49-50. The Chief Executive, as Accounting Officer, ensures that all public funds made available to us are used for the purposes intended by Parliament, that adequate internal controls are maintained, and that accounts are prepared in line with the Secretary of State’s requirements. Further details of the responsibilities of the Accounting Officer are given in the statement on page 36. Company directorships and other significant interests All interests have been declared and are managed accordingly to ensure there is no impact on their responsibilities.26 Personal data incidents There was no YJB security data incident reported to the Information Commissioner’s Office (ICO) in the year. No data was lost. Basis of accounts The statement of accounts has been prepared in a form directed by the Secretary of State and is issued in accordance with the Crime and Disorder Act 1998. Auditors The financial statements are audited by the Comptroller and Auditor General, who is appointed by statute. The audit fee is disclosed in Note 2.1 (see page 75). This does not include any fees for non-audit work as no such work was undertaken. Our Welsh Language Scheme We are committed to the principle of treating the English and Welsh languages on a basis of equality when conducting public business in Wales. We have a Welsh Language Scheme, currently being updated, that complies with the Welsh Language (Wales) Measure 2011 and explains how we will put this principle into practice. The Welsh Language Commissioner is in the process of developing regulations that will set Welsh language standards for us. We support the setting of proportionate standards and are working with the office of the Commissioner to understand the nature of the standards that are likely to be set and the timescale for implementation.
26 Register of interests available at: https://www.gov.uk/government/organisations/youth-justice-board-for-england-and-wales/about/membership
35 Annual report and accounts 2019/20
Statement of Accounting Officer’s responsibilities The Accounting Officer of the MoJ has designated the Chief Executive of the YJB as the Accounting Officer for the YJB. The responsibilities of an Accounting Officer are set out in ‘Managing Public Money’27 published by HM Treasury. Under the Crime and Disorder Act 1998, the Secretary of State, with the approval of HM Treasury, has directed us to prepare for each financial year a statement of accounts in the form and on the basis set out in the Accounts Direction. The accounts are prepared on an accruals basis and must give a true and fair view of our state of affairs and of our net expenditure, changes in taxpayers’ equity and cash flows for the financial year. Under the Act, the Accounting Officer discharges his responsibilities on behalf of the Board, who are required by legislation to keep proper accounts and records, and to prepare a statement of accounts. In preparing the accounts, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual and to: • observe the Accounts Direction issued by the Secretary of State, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis • make judgements and estimates on a reasonable basis • state whether applicable accounting standards, as set out in the Government Financial Reporting Manual, have been followed, and disclose and explain any material departures in the financial statements • prepare the financial statements on a going concern basis. The Accounting Officer also confirms that: • to his knowledge there is no relevant audit information of which the YJB’s auditors are unaware • he has made himself aware of any relevant audit information and communicated this to YJB’s auditors • the annual report and accounts and the judgements on which they are based are fair, balanced, and understandable • he has taken personal responsibility for the annual report and accounts.
Colin Allars Chief Executive and Accounting Officer Date: 10 September 2020
27 See: www.gov.uk/government/publications/managing-public-money
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Governance statement
Introduction by Colin Allars, Chief Executive of the YJB As Chief Executive and YJB Accounting Officer, I have been responsible for managing a budget delegated directly to me by the Ministry of Justice (MoJ), and for managing a budget allocated to the YJB retained in the MoJ, in accordance with the conditions set out in my letter of delegation from the MoJ. This governance statement sets out details of the YJB’s corporate governance, assurance, risk management and other internal processes designed to manage and control resources used by the YJB, in accordance with responsibilities outlined in Managing Public Money. This statement also describes how those duties have been carried out through the year and includes accounts of both the YJB’s corporate governance and risk management. In signing this statement, I confirm that there is nothing within my area of delegated responsibility that has a material impact on regularity or propriety. I am also in possession of letters of assurance from my team of directors, in relation to their areas of delegated responsibility.
Governance framework We are a non-departmental public body, created by the Crime and Disorder Act 1998. Our functions are summarised in the ‘who we are and what we stand for' section on page 8.
Framework document The overarching framework within which we operate is set out in a framework document, agreed between us and the MoJ, which sets out the following: • our governance responsibilities, including the personal responsibilities of our Chair, Board members and Chief Executive • the MoJ’s governance responsibilities for the YJB as its departmental sponsor, including those of ministers and the Principal Accounting Officer • our financial management and reporting responsibilities, and the conditions under which any public funds are paid to us • organisational management, including: • Board responsibilities for our staff • pay and conditions of service • security and information assurance • freedom of information and data protection • parliamentary business, including our contributions to Parliamentary Questions and ministerial correspondence, and attendance at Select Committee hearings. The Framework Document was approved in June 2019.
37 Annual report and accounts 2019/20
Strategic and business planning Our Strategic Plan for 2018-2128 sets out our vision and mission statement for the period that this report is looking at. The plan has been revised and was published in May 2019.29
Our Chair, Board and committees Chair and Board Our Chair and Board members set our overall strategic direction. They ensure that we operate within the limits of our statutory authority and set our strategic objectives. Our Board members are appointed by the Secretary of State for Justice in line with the Governance Code for Public Appointments compiled and issued by the Office of the Commissioner for Public Appointments. We can have 10–12 Board members. At 31 March 2020 there were 10 members including the Chair. Among our Board members there is specific representation for Wales. A list of all our Board members and a brief biography can be found on GOV.UK30 Our Chief Executive and relevant Directors also attend Board meetings. The Board formally met five times during 2019/20. A schedule of attendance is shown in the following table. YJB Board meeting attendance for 2019/20
Member 19/06/19 18/09/19 04/11/19 11/12/19 11/03/20
Youth Justice Board members
Gillian Fairfield ✔ ✔ ✔ ✔ X
Charlie Taylor ✔ ✔ ✔ ✔ ✔
Neil Rhodes X ✔ ✔ ✔ ✔
Ben Byrne ✔ ✔ ✔ ✔ ✔
Keith Fraser ✔ ✔ ✔ ✔ ✔
Sharon Gray X ✔ X ✔ X
Neal Hazel ✔ ✔ X ✔ ✔ Resigned on Mairead Healy ✔ ✔ X NA 10/12/19 Keith Towler ✔ ✔ X ✔ ✔
Brian Tytherleigh ✔ ✔ ✔ ✔ ✔
Sir Alan Wood ✔ ✔ ✔ ✔ ✔
Chief Executive
Colin Allars (Chief Executive) ✔ ✔ ✔ ✔ ✔
28 https://www.gov.uk/government/publications/youth-justice-board-for-england-and-wales-strategic-plan-2018-21 29 https://www.gov.uk/government/publications/youth-justice-board-for-england-and-wales-strategic-plan-2019-22 30 YJB Board member biographies available at: https://www.gov.uk/government/organisations/youth-justice-board-for-england-and-wales/about/ membership.
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Committees The Board is supported by these committees: • the Finance, Audit and Risk Assurance Committee (incorporating the Remuneration and Personnel Committee) • the Performance Committee • the Wales Youth Justice Advisory Panel (which is jointly operated with the Welsh Government) The Board meetings and committees are attended by Board Members, relevant members of the Senior Leadership Group and other YJB staff as required. Colleagues from Internal Audit and the National Audit Office also attend the Finance, Audit and Risk Assurance Committee. MoJ officials attend the Board, Performance Committee and the Finance, Audit and Risk Assurance Committee. The Board and its committee membership is contained in the accountability report on pages 32-60. The committees all met quarterly in 2019/20, except for the Remuneration Committee which met once and has now been incorporated into the Finance, Audit and Risk Assurance Committee. The work of the Board and its committees is formally prescribed in our corporate governance document set, which includes the committee’s terms of reference, YJB standing orders, the code of conduct for YJB Board members, and our scheme of delegation. The Finance, Audit and Risk Assurance Committee provides specific scrutiny of YJB corporate governance and risks and advises our Board on the strategic processes for managing risks, control and governance as well as the planned activity, and results of both internal and external audit. The Performance Committee oversees and scrutinises delivery of our Strategic Plan and Business Plan and provides assurance to that end to the Board. This is largely achieved through its regular review of our quarterly Corporate Performance Report, which is the substantive item on the Committee’s agenda. The Wales Youth Justice Advisory Panel oversees our work to achieve strategic objectives in relation to Wales, and acts as a strategic stakeholder reference group for YJB and Welsh Government change initiatives in Wales. Its role is to provide independent advice to the Youth Justice Blueprint implementation programme. The panel is jointly chaired by our Board Member for Wales, Keith Towler, and the Welsh Government Director for Local Government and Public Service Department. It is attended by representatives from strategic youth justice partners in Wales. The Remuneration and Personnel Committee maintains oversight of the remuneration of our staff, including consideration of the Chief Executive’s and any Senior Civil Servant equivalent staff annual appraisal and the appointment of staff reporting directly to the Chief Executive.
39 Annual report and accounts 2019/20
The Senior Leadership Group (SLG) The SLG ensures delivery of the Strategic and Business Plans. It comprises of the Chief Executive and directors of each directorate. In addition, an operational SLG focused on operational delivery is chaired by the Chief Operating Officer. Our directorates are as follows: Programme Delivery • co-ordinate and monitor progress of our activities in support of our priorities • provide planning, co-ordination, direction and flexible resource deployment of projects of work to support the Board’s priorities Strategy and Planning • set clear strategic direction across the organisation and maintaining strategic relationships to support the Boards’ aims • provide support to the Executive and Board • develop high quality advice and briefing to the Board, ministers and other government departments • policy and parliamentary horizon scanning and developing policy Organisational Development • develop a clear people strategy for resourcing, reward, retention and skills development • provide advice and expertise to the Executive and Board on all people matters • provide oversight of an organisational development plan • provide management information to enable the organisation and relevant departments to make resourcing and organisational decisions Innovation & Engagement (England & Wales) • direct engagement and intelligence gathering with stakeholders across youth justice partnerships and inspectorates to aid achievements of the Board’s aims, identifying risks and opportunities • enable delivery of our statutory duties in regular whole system monitoring, the identification and promotion of effective practice, and supporting improvement • oversight of performance across the youth justice system and the delivery of standards for children in the youth justice system across England and Wales Evidence and Technology • provide expert support and advice for all YJB functions on ICT, research, data and analysis • collate and make data and information accessible • information security, data protection and information sharing advice Business Support • provide financial and risk assurance to the Board, Executive and Auditors • ensure internal and external communications are appropriate and meet the needs of the staff/sector • administration of the Youth Justice Grant • advice and support across the YJB where objectives require police involvement.
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Account of corporate governance Parliamentary accountability The Secretary of State for Justice is accountable to Parliament for our activities and performance. The Secretary of State’s responsibilities include: • approving our strategic objectives and the policy and resources framework within which we operate • keeping Parliament informed about our performance • securing the Grant in Aid to the YJB, and parliamentary approval for these funds • appointing our Chair and Board members • laying our annual report and accounts before Parliament. Our Chair is responsible to the Secretary of State for Justice. Our Chair is also responsible for ensuring that activities support the Minister for Youth Justice and that our affairs are conducted with probity. Our Chair, Chief Executive and other senior officials can appear before parliamentary committees, commissions and inquiries to give evidence about our work, the youth justice system more generally, and the use and stewardship of the public funds entrusted to us. We provide information to the MoJ and other government departments as requested to assist them in answering Parliamentary Questions. During the year, we contributed information to 18 Parliamentary Questions. The role of the Board Our Board has corporate responsibility for ensuring that we fulfil the aims and objectives agreed with the Secretary of State and for promoting the efficient and effective use of staff and other resources. In terms of governance oversight, the Board has a specific responsibility, outlined in the Framework Document, for: … ensuring that any statutory or administrative requirements for the use of public funds are complied with; that the Board operates within its limits of its statutory authority and any delegated authority agreed with the MoJ, and in accordance with any other conditions relating to the use of public funds; and that, in reaching decisions, the Board takes into account guidance issued by the MoJ. Board effectiveness Our Chair completed end-of-year reviews on each of the Board members for their performance in 2019/20. The annual performance assessment of the Chair is the responsibility of the Director General for the Justice Policy, Strategy and Communications Group on behalf of the Secretary of State, to whom the assessment is reported. The Board started its review of effectiveness in March 2020, with the completion of a survey addressing the different aspects of its role. The review will conclude at the Board meeting in June 2020 when the Board will review and update its scheme of delegation, standing orders and its committee terms of reference. The next Board Effectiveness Review was in completed in June 2020. The provision of information and data to the Board As mentioned on page 39 above, the Performance Committee scrutinises delivery of our Strategic Plan and Business Plan on behalf of the Board. The committee provides a written report to the Board after each meeting, outlining the key areas of note.
41 Annual report and accounts 2019/20
The Corporate Performance Report provides the Board with the following information: • data and analysis on the performance of the youth justice system, including data on first time entrants, reoffending rates, reducing the use of custody, and the custodial population • a performance and risk assessment of YOTs and the secure estate • YJB corporate data in relation to finance and human resources • a summary of progress against corporate objectives delivered through the priority programme. Information in the Corporate Performance Report is drawn from the Police National Computer, case management data submitted by YOTs through the Youth Justice Application Framework and data supplied from secure establishments. These are well-established datasets, which are subject to regular quality assurance and which also contribute to National Statistics. Our corporate data is drawn from systems provided to us by the MoJ. Ministerial Directions There were no Ministerial Directions sought or issued. Payment of grants to youth offending teams and performance oversight Section 41(5) of the Crime and Disorder Act 1998 gives us authority to make grants, with the approval of the Secretary of State, to local authorities or other bodies for the purposes of the operation of the youth justice system and the provision of youth justice services. In 2019/20, we allocated £72m for youth justice grants to local authorities to YOTs, based on a historical assessment of need. The terms and conditions of the grant allow local flexibility for YOTs to direct financial resources to specific areas of youth justice activities, in alignment with their youth justice strategic plans. The terms and conditions of grants were signed by the Chair of each YOT management board, the local authority Chief Financial Officer and the YOT Manager as proof of acceptance prior to funding being released by us. Costed youth justice plans were also received in advance. Audit certificates signed by the local authority Chief Financial Officer and the YOT Manager were received at the end of the financial year to evidence regularity of expenditure. The approach to overseeing the overall effectiveness of youth justice services and YOTs specifically is based on risk-led monitoring and oversight. This focuses on driving improved outcomes in youth justice services and identifying areas of effective practice across the youth justice sector and its partnerships. A quarterly Performance Oversight Board considers data against national justice indicators (first time entrants, proven reoffending and use of custody). This oversight is also supported by more qualitative considerations of how partnerships operate against the standards for children in the youth justice system, annual youth justice plans and intelligence from other sources including direct contact with services, inspection outcomes and progress against post-inspection improvement plans. Where we consider performance indicates the need to improve, we will facilitate direct oversight and improvement support and, importantly, also promote sector-led improvement activity. Where progress proves difficult to sustain, a process is in place which includes escalation to both chief executive and ministerial levels. Our internal audit service conducts an annual audit of the governance of grants. This is to provide an opinion on the adequacy, effectiveness and reliability of the controls operating over the use of grant monies. In 2019/20, this involved the team visiting a sample of six YOTs to review their financial and governance arrangements. The final audit report returned a ‘substantial’ rating with no critical or significant areas of weakness identified.
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Internal audit The internal audit service, operating to the standards set out in Public Sector Internal Audit Standards, draws up its annual audit plans based on an analysis of the risk to which the YJB is exposed and discussions with members of the SLG. The plans are endorsed by the Finance, Audit and Risk Assurance Committee and approved by the Chief Executive. The implementation of accepted recommendations resulting from internal audits is monitored by the Finance, Audit and Risk Assurance Committee. The Government Internal Audit Association issues assurance ratings for completed audits. The assurance rating definitions are detailed below.
Assurance rating Definition The framework of governance, risk management and control is adequate Substantial and effective.
Some improvements are required to enhance the adequacy and Moderate effectiveness of the framework of governance, risk management and control.
There are significant weaknesses in the framework of governance, Limited risk management and control such that it could be or could become inadequate and ineffective.
There are fundamental weaknesses in the framework of governance, risk Unsatisfactory management and control such that it is inadequate and ineffective or is likely to fail.
The commissioned and completed audits and assurance rating during the year is tabled below:
Audit undertaken Assurance rating*
Governance of grants Substantial
Budget management Substantial
Governance of ICT & ICT Procurement Moderate
Risk management framework Limited
Internal audits on behalf of the Permanent Secretary as Principal Accounting Officer. Overall view of internal audit The Government Internal Audit Association provides an annual report to the Accounting Officer which gives the annual opinion for the year on our frameworks for risk management, control and governance. A copy of the annual report is also submitted to the first Finance, Audit and Risk Assurance Committee meeting of the year. The Government Internal Audit Association’s judgement and annual opinion is based on the audit opinions and other relevant information presented at the year’s quarterly finance, audit and risk assurance meetings. In response to the limited rating on the Risk Management Framework audit, we have undertaken a review of our risk management processes and developed an action plan to improve capability and standardise risk management practice. We have already implemented a number of improvements including revision of
43 Annual report and accounts 2019/20
the strategic risk register, training for key staff, review of organisational risk appetite and implementation of monthly risk meetings. We will continue to embed an active risk management culture through risk awareness sessions, update of the risk management framework and by integrating risk management into the business planning cycle. The report for 2019/20 indicated an “annual opinion of moderate on the adequacy and effectiveness of the framework of governance, risk management and control”.
Risk assessment Our risk management is based on appropriate levels of communication and the sharing of knowledge from risk experts throughout the organisation. The Risk & Services Management (RSM) Team has also regularly reviewed the strategic risk register and supported SLG members to monitor and actively work towards reducing the risks that they own. The SLG requires all staff to adhere to the guidance provided on our approach to risk management, which includes identifying and managing risks relevant to their work. Through regularly reporting to SLG over the last 12 months, the RSM Team has continued to effectively co-ordinate the risk processes at a corporate level within the YJB. The risk management framework Our risk management framework was reviewed by the Finance, Audit and Risk Assurance Committee in 2019. This framework sets out the entire risk management system within the organisation. This aligns with HM Treasury’s Orange Book, Management of Risk – Principles and Concepts (2013) and with the MoJ’s Risk Management Core Policy (June 2017). The framework was next due for review in Spring 2020. In accordance with the risk and control framework, the risk register is reviewed at least quarterly by the SLG and the Finance, Audit and Risk Assurance Committee. Risk profile The YJB is now in a more strategic position since the accountability for the secure estate moved to the Youth Custody Service (YCS). Along with the Finance, Audit and Risk Assurance Committee, we have placed focus on areas of our oversight and the risks of being too removed from frontline operations. Nevertheless, should such risks materialise, they could of course pose detriment to children in the youth justice system and our reputation. Our principal risks and mitigating actions identified during 2019/20 were as follows:
Principal risks Key mitigating actions and controls
The YJB’s failure to engage its stakeholders effectively
We must engage with • We regularly engaged with key stakeholders and partners through the our stakeholders to stakeholder fora influence and advise • The Youth Justice Blueprint for Wales was founded and as a result, YJB were political change to sighted on emerging pieces of work that would inform the evidence base impact areas where there has been limited • A termly ministerial update was provided from the Board to the Deputy progress against critical First Minister strategic issues, such • A letter is issued quarterly from the YJB Chair to the Secretary of State for Justice as safety in custody and increase political • We have provided regular advice to ministers via written submissions and focus on such issues. meetings with ministers
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Principal risks Key mitigating actions and controls
The YJB's objectives are not met due to ineffective governance and leadership (both internally and across the wider system) The failure to apply • The YJB reviewed its existing governance structures and considered how its good practice to resources align to these structures to maximise delivery deliver the objectives • The Board and its committees reviewed their Terms of Reference to work may result in the more effectively reduction of the YJB's political impact for the youth justice system.
The YJB fails to have continuity of appropriately skilled senior leaders
The YJB’s lack • A skills assessment and skills gap analysis of the directors and senior of succession leaders had been undertaken planning and/or • Senior managers undertook a managerial development programme to lack of leadership develop their leadership skills capability negatively impacts on the YJB's • Recruited to fill all posts in the SLG performance and retention of staff.
Insufficient evidence base to provide sound advice and have effective oversight of the youth justice system The YJB requires a • A new data dashboard was put in place for the Welsh Youth Justice sufficient evidence Advisory Panel proving effective in engaging members in whole system base to support the monitoring advice provided to • An Academic Liaison Network was established to facilitate engagement and ministers. initial calls for evidence was agreed • Data Recording Requirements for 2020/21 was agreed with wider scope of data to support the organisations strategic objectives
Lack of effective influence/ credibility with ministers
Welsh and UK • Ongoing engagement with ministers for England and Wales and governments do senior officials not prioritise youth • Quarterly meetings with the Chair of YJB and the Secretary of State justice, therefore for Justice the YJB is unable to align its objectives • Convening the Youth Justice System Oversight Group to support ministerial to theirs. This could understanding of strategic issues result in failure to improve outcomes for children in the youth justice system and reputational damage to the YJB.
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Principal risks Key mitigating actions and controls
YJB technology systems not fit for purpose
Failure or weakness • Regular service reviews were conducted to ensure contractors delivered in YJB information value for money in conjunction with excellent performance technology (IT) • Cyber security and data protection inductions were included in the systems impact induction checklist negatively on the youth justice system. • Schema changes have been combined into one annual update to limit the number of updates for YOTs • Introduced revised ICT governance ensuring key stakeholders are engaged
Failure to obtain the right amount of funding and spend what is obtained effectively
Not enough funding • Regular meetings with the Ministry of Justice to ensure budget allocation for in the system to meet 2019/20 was not reduced and that youth justice was prioritised the needs of children • A finance paper is discussed at the SLG monthly meeting and risks and the communities escalated to the Finance and Risk Assurance and Performance Committees to improve the youth as well as to the MoJ as necessary justice system.
YJB assurance map We measure the effectiveness of our mitigations for risks via an ‘assurance map’, based on HM Treasury guidance. This map sets out the assessment of the key risks to the systems and processes that we must be assured are sufficiently managed. Control measures that are in place to mitigate our process and system-based risks are evaluated within the assurance map. Summary of YJB Assurance Map
First Line of Second Line of Third Line of Controls Independent Defence Defence Defence Financial policies incl. Business Corporate oversight Independent External and segregation of duties management assurance: separate assurance: this independent and internal delegation; assurance: the YJB from the work of includes oversight by assurance strategic & business plan; has established those responsible for the Finance, Audit, commissioned by YOT grant conditions; assurance delivery, this includes Risk and Assurance bodies outside the fraud policies, training arrangements to scrutiny by the Senior Committee, Board organisation: this and escalation routes; document and Leadership Group, oversight, MOJ includes reviews by staff policies and monitor how well the work of the Business Partnering the National Audit training; business delivery objectives Government Internal oversight and Office, oversight by continuity plan; risk are being met and Audit Agency in Government Internal MoJ Sponsor Unit, management framework; risks managed. These auditing YOT grants, Audit Agency audits. complaint escalation communications strategy. include monthly monitoring by Health to Parliamentary reporting, risk and & Safety Committee, & Health Services asset registers, annual Governance Ombudsman, HMIP/ financial reconciliation Statement reporting Ofsted joint inspection processes, clear and Performance framework and review governance structures Oversight Board. of Annual Report and line management and Accounts by checks. Ministers.
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The evidence presented in the assurance map was reviewed and updated in April 2020 and will be reviewed quarterly thereafter. Information assurance, lapses of data security, and freedom of information Our information assurance policy ensures that the information we hold is: • handled securely • appropriately protected • as accurate as possible • made available to the right people, at the right time, for the correct reasons The policy complies with the Cabinet Office HMG Security Policy Framework. The ICT systems we operate on behalf of the youth justice system are appropriately accredited for security and information assurance, in line with CESG guidance (CESG is the UK government’s national technical authority for information assurance). No data security incident was reported to the ICO during the year. A number of low risk security incidents were identified over this period, with no identified incidents that presented a material risk of harm to the data subject(s) involved. Our whistleblowing and raising a concern policy sets out for staff (including service providers such as contractors) what to do if they are concerned about wrongdoing. No whistleblowing cases were submitted during the year. We answered 36 Freedom of Information requests in the year, of which all were within statutory timescales.
Health and safety Our health and safety function is led by the Chief Operating Officer. The Risk and Service Management Team has oversight of our Corporate Health and Safety Policy, which enables us to comply with its legal duties and responsibilities under the Health and Safety at Work Act 1974. A YJB Corporate Health and Safety Committee meets bi-annually and is chaired by the Chief Operating Officer. This Committee reports to the SLG and an annual report is submitted to the Finance, Audit and Risk Assurance Committee. Following the emergence of the COVID-19 global pandemic, the UK government implemented a number of measures to contain, delay and mitigate the outbreak. We responded to the emerging pandemic at speed; facilitating remote working for all staff and implementing virtual stakeholder meetings to understand the impact of COVID-19 upon the operation of the youth justice system. We established a COVID-19 Working Group to coordinate our response to the pandemic, including planning for recovery. The purpose of the COVID-19 Working Group is to draw together evidence and concerns about working during COVID-19 and subsequent recovery, using a three-stage model for recovery. The pandemic has introduced a number of new risks and issues, which we have captured and mitigated. We continue to scan the horizon for emerging risks, as we move through the recovery stages of the pandemic. We have reviewed our Assurance Map controls, ensuring that they remain active and appropriate, and the Board has reviewed and updated our risk appetite in light of the unique external landscape of 2020.
Colin Allars Chief Executive and Accounting Officer Youth Justice Board for England and Wales Date: 10 September 2020
47 Annual report and accounts 2019/20
Remuneration and staff report
Remuneration policy Our staff, whether on permanent or temporary contracts, are subject to levels of remuneration and terms and conditions of service (including superannuation) which are a combination of the new Civil Service employment offer and/or individually held legacy terms. Staff are classed as public servants and not civil servants, although the contracts are similar. Until 2018 we operated a performance-related pay scheme. For staff graded as equivalent to the Senior Civil Service, the performance framework set by the Cabinet Office for the Senior Civil Service is applied. We operate the Civil Service Compensation Scheme.31 This report discloses the remuneration of those serving on our Board comprising the Chair, YJB members and Executive Directors, including the Chief Executive and Chief Operating Officer. This disclosure is made to comply with Treasury requirements to show the remuneration of those who influence the direction of the entity as a whole.
YJB members’ terms of appointment Appointment of YJB members, including the Chair, is for a period of up to four years. The appointment of all YJB members, and extension of their appointments, is made by the Secretary of State for Justice. Reappointments are subject to a satisfactory appraisal process. Charlie Taylor was appointed as Chair in 2016/17 and permission was sought and received from the Commissioner of Public Appointments not to run a competition in this case. Charlie Taylor’s two-year term of appointment commenced with effect from 18 March 2017. His appointment was extended until 16 March 2020 on 20 November 2018. The new Chair, Keith Fraser started on 14 April 2020. Early termination of a YJB member’s appointment is at the discretion of the Secretary of State for Justice. The notice period for YJB members is three months.
Executive Directors’ terms of appointment Executive Directors are either permanent employees of the YJB, loans from Civil Service or secondees from non-Civil Service organisations. When conducting recruitment campaigns, we follow the Civil Service Commissioner’s recruitment principles32 to ensure open and fair recruitment with appointments based on merit. We offer a guaranteed interview scheme for people with disabilities who meet the role criteria.
Remuneration and Personnel Committee Our Remuneration and Personnel Committee met once during 2019/20 and has now been incorporated into the Finance, Audit and Risk Assurance Committee. It had delegated authority to consider the annual appraisal of the Chief Executive and Chief Operating Officer, and to approve any changes to the remuneration of the Chief Executive and all members of the Senior Leadership Group (SLG). This included the arrangements for and conditions of any remuneration or benefits in kind over and above their basic salary. The Remuneration and Personnel Committee comprised five members: the YJB Chair, the Chair of the YJB Finance, Audit and Risk Assurance Committee and three other Board members.
31 Further information on the Civil Service Compensation scheme is available online at: http://www.civilservicepensionscheme.org.uk/civil-service- compensation-scheme/ 32 Further information about the work of the Civil Service Commissioners can be found online at: http://civilservicecommission.independent.gov.uk
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Remuneration (audited information) Board and Executive Management Group, now renamed Senior Leader Group The remuneration of the Chair and YJB members is determined by the Secretary of State for Justice. Board members’ fees are £250 per day. The Chair (Charlie Taylor) is paid a salary. No pension benefits are paid to Board members. For the year ended 31 March 2020, YJB members and Executive Directors received remuneration as follows. Where an individual was not in post for the full year or on extended leave, a full year effect (FYE) figure is shown for comparative purposes.
2019/20 2018/19 Pension Pension benefits benefits Benefits (to nearest Benefits (to nearest Name and Title Salary Bonuses in kind £1,000)33 Total Salary Bonuses in kind £1,000)33 Total £’000s £’000s £’000s £’000s £’000s £’000s £’000s £’000s £’000s £’000s Charlie Taylor34 75-80 – 0.2 – 75-80 60–65 – – – 60–65 Chair Colin Allars 115-120 – – 16 130-135 110–115 – – 135 110–115 Chief Executive Alan Wood 5-10 – – – 5-10 5-10 – – – 5-10 YJB Member Ann Skamarauskas Director of 70-75 0-5 – 27 95-100 65-70 0-5 – 2 70-75 Organisational Development and Change Ben Byrne 5-10 – – – 5-10 5-10 – 0.1 – 5-10 YJB Member Brian Tytherleigh 10-15 – 2 – 10-15 10-15 – 2.2 – 10-15 YJB Member Catherine Worswick36 15-20 25–30 Director of Strategy 10-15 – – 5 15-20 (FYE 25- 0-5 – 10 (FYE 35- & Planning (since 30) 40 01 September 2018) Gillian Fairfield 10-15 – 1.3 – 10-15 10-15 – 2.0 – 10-15 YJB Member Jonathan 45-50 55-60 Pickles37 31(since 70-75 – – – 70-75 (FYE 95- 7.9 (FYE 1 October 2018) 100) 100-105) Keith Fraser 5-10 – 8.8 – 15-20 5-10 – 8 – 15-20 YJB Member Keith Towler 5-10 – 0.9 – 10-15 5-10 – 0.8 – 10-15 YJB Member
33 The value of pension benefits accrued during the year is calculated as the real increase in pension multiplied by 20 less the contributions made by the individual. The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights. 34 Charlie Taylor’s remuneration band not only includes remuneration received in his role as Chair but also work carried out for the Ministry of Justice's 'Pain Inducing Techniques' programme. The remuneration received on that work falls within the 20 -25 salary band. 35 The 2018/19 pension was recalculated by MyCSP due to retrospective change to pensionable pay. This was published as £4k in last year’s accounts. 36 Catherine Worswick is employed as a 0.7 Full-time equivalent. 37 Jonathan Pickles is on secondment to YJB from the West Yorkshire Police. His salary is invoiced to the YJB monthly.
49 Annual report and accounts 2019/20
2019/20 2018/19 Pension Pension benefits benefits Benefits (to nearest Benefits (to nearest Name and Title Salary Bonuses in kind £1,000)33 Total Salary Bonuses in kind £1,000)33 Total £’000s £’000s £’000s £’000s £’000s £’000s £’000s £’000s £’000s £’000s Lisa Harvey- Messina Director 5-10 10-15 35-40 55-60 of Innovation (FYE 65- 0-5 0.2 5 (FYE 70- (FYE 65- 0-5 4.5 15 (FYE 85- & Engagement 70) 75) 70) 90) England (since 01 September 2018) Lynzi Jarman Director of 30-35 45-50 Innovation & 55-60 – – 23 80-85 (FYE 55- 0-5 – 13 (FYE 65- Engagement 60) 70) Wales (since 01 September 2018) Cheryl de Freitas Director of Innovation and 60-65 26 85-90 Engagement England (since 01 May 2019) Mairead Healy 0-5 – 0.1 – 0-5 5-10 – 1.1 – 5-10 YJB Member Mairi Warrington 30-35 45-50 Director of Strategy 55-60 – – 24 75-80 (FYE 55- – 0-5 14 (FYE 70- & Planning (since 01 60) 75) September 2018) Paula Williams Director of Strategy 50-55 0.3 5 55-60 and Planning (since 08 January 2020) Martin Skeats38 Director of 75-80 – – 34 110-115 70-75 0-5 – 33 105-110 Programme Delivery Neal Hazel39 5-10 – 0.7 – 5-10 5-10 – 0.9 – 5-10 YJB Member Neil Rhodes 5-10 – 1.9 – 10-15 5-10 – 2.9 – 10-15 YJB Member Paul Clarke Director of 5-10 5-10 40-45 60-65 Oversight & (FYE 75- – – 2 (FYE 75- (FYE 75- 0-5 – 17 (FYE 90- Intelligence (To 22 80) 80)) 80) 95) April 2019) Sophie Riley Director of Evidence and 60-65 43 105-110 Technology (since 23 April 2019) Sharon Gray 5-10 0-5 – – 5-10 5-10 – 2.3 – 10-15 YJB Member Stephanie 65-70 110-115 Roberts-Bibby 105-110 – – 55 160-165 (FYE – – 41 (FYE Chief Operating 110-115) 150-155) Officer
38 Martin Skeats was on secondment to Disclosure and Baring Service since January 2020. 39 Neal Hazel does not receive Board member fees, these are paid directly to Salford University.
50 Section 2 Accountability report 2019/20
Benefits in kind – Board member The monetary value of benefits in kind covers any benefits provided by the YJB and reimbursements of costs treated by HM Revenue and Customs (HMRC) as a taxable emolument. Board members are reimbursed for their travel and subsistence costs incurred in attending Board business. Since Board members are deemed by HMRC to be employees of the YJB, as appropriate, the amounts of these reimbursements are treated as benefits in kind and are disclosed in the table above. The taxation arising on such expenses is borne by the YJB. Salary Salary covers both pensionable and non-pensionable amounts and includes, but may not necessarily be confined to: • gross salaries • overtime • reserved rights to London weighting or London allowances • recruitment and retention allowances • private office allowances and any other allowance to the extent that it is subject to UK taxation. Bonuses Bonuses are based on performance levels and are awarded following the formal review process. The performance framework set by the Cabinet Office for the Senior Civil Service (SCS) is used as a guide for YJB executive managers graded as equivalent to the SCS. Our Remuneration and Personnel Committee gives final approval of these bonuses. Executive managers can receive a bonus depending on their performance throughout the year. This process follows our performance management and reward and recognition guidance, with performance assessed on an ongoing basis with reward to recognise work throughout the year. Bonuses are included in the table above on a cash basis, so that bonuses disclosed for each year represent those paid to staff in that year but relate to performance in the previous year. Benefits in kind – executive management The monetary value of benefits in kind covers any benefits provided by us and is treated by HMRC as a taxable emolument. Pension benefits Pension benefits are calculated as the real increase in pension multiplied by 20, plus the real increase in any lump sum, less contributions made by the employee. The real increases exclude increases due to inflation or any increase or decrease due to a transfer of pension rights. Pay multiples (audited information) Reporting bodies are required to disclose the relationship between the remuneration of the highest-paid director in their organisation and the median remuneration of the organisation’s workforce. The banded remuneration of our highest-paid director in the financial year 2019/20, excluding pension benefits, was £115-120k (2018/19: £110-115k). This was 3.0 times (2018/19: 2.8 times) the median remuneration of the workforce, which was £39,699k (2018/19: £40,290k). In 2019/20, no employees received remuneration in excess of the highest-paid director (2018-19: Nil). Remuneration ranged from £15-20k to £115-120k (2018-19: £15-20k to £110-115k). Total remuneration for this calculation includes salary, non-consolidated performance-related pay, and benefits in kind. It does not include pension benefits, employer pension contributions and the cash equivalent transfer value of pensions.
51 Annual report and accounts 2019/20
Pension entitlements (audited information)
Accrued pension at Real increase Real pension age as in pension at CETV at CETV at increase in Name and Title at 31/03/19 pension age 31/03/2019 31/03/2018 CETV
£’000s £’000s £’000s £’000s £’000s 50-55 plus a Colin Allars 0-2.5 plus a lump lump sum of 155 1208 1135 17 Chief Executive sum of 2.5-5 - 160 Ann Skamarauskas Director of Organisational Development 15-20 0-2.5 246 215 18 and Change Catherine Worswick2 Director of Strategy & Planning 10-15 0-2.5 128 120 2 (since 01 September 2018) Cheryl de Freitas 10-15 plus a 0-2.5 plus a lump Director of Innovation & Engagement lump sum of 189 167 10 sum of 0-2.5 England 25-30 Lisa Harvey-Messina Director of Innovation & Engagement 25-30 0-2.5 313 307 3 England (since 01 September 2018) Lynzi Jarman Director of Innovation & Engagement 5-10 0-2.5 67 53 8 Wales (since 01 September 2018) Mairi Warrington Director of Strategy & Planning 5-10 0-2.5 42 29 7 (since 01 September 2018) Paula Williams 10-15 0-2.5 134 131 2 Director of Strategy and Planning Martin Skeats 35-40 0-2.5 698 644 22 Director of Programme Delivery Paul Clarke Director of Oversight & Intelligence 5-10 0-2.5 153 149 1 (since 01 September 2018) Sophie Riley 10-15 0-2.5 145 116 19 Director of Evidence and Technology Stephanie Roberts-Bibby 30-35 plus a 2.5-5 plus a lump Chief Operating officer (since 03 lump sum of 496 442 29 sum of 0-2.5 September 2018) 65-70
52 Section 2 Accountability report 2019/20
Civil Service pensions Pension benefits are provided through the Civil Service pension arrangements. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis with a normal pension age equal to the member’s State Pension Age (or 65 if higher). From that date, all newly appointed civil servants and the majority of those already in service joined alpha. Prior to that date, civil servants participated in the Principal Civil Service Pension Scheme (PCSPS). The PCSPS has four sections: three providing benefits on a final salary basis (classic, premium or classic plus) with a normal pension age of 60; and one providing benefits on a whole career basis (nuvos) with a normal pension age of 65. These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium, classic plus, nuvos and alpha are increased annually in line with Pensions Increase legislation. Existing members of the PCSPS who were within 10 years of their normal pension age on 1 April 2012 remained in the PCSPS after 1 April 2015. Those who were between 10 years and 13 years and 5 months from their normal pension age on 1 April 2012 will switch into alpha sometime between 1 June 2015 and 1 February 2022. All members who switch to alpha have their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes.) Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a ‘money purchase’ stakeholder pension with an employer contribution (partnership pension account). Employee contributions are salary-related and range between 4.6% and 8.05% for members of classic, premium, classic plus, nuvos and alpha. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years’ initial pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum. Classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium. In nuvos, a member builds up a pension based on their pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member’s earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation. Benefits in alpha build up in a similar way to nuvos, except that the accrual rate is 2.32%. In all cases, members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004. The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 8% and 14.75% (depending on the age of the member) into a stakeholder pension product chosen by the employee from a panel of providers. The employee does not have to contribute, but where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally-provided risk benefit cover (death in service and ill health retirement). The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of classic, premium and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension Age for members of alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes, but note that part of that pension may be payable from different ages.) Further details about the Civil Service pension arrangements can be found at the website: www.civilservicepensionscheme.org.uk
53 Annual report and accounts 2019/20
Cash Equivalent Transfer Values A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued because of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member because of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken. Real increase in CETV This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period. Compensation for loss of office No compensation payments for loss of office were made during the year (2018/19: nil). Reporting of Civil Service and other compensation schemes – exit packages We had no early departure costs in 2019/20 (2018/19: nil)
54 Section 2 Accountability report 2019/20
Staff statistics
The chart below summarises YJB staff composition as at 31 March 2020. Read pages 56-60 for more staffing analysis.
All ta by en er All ta by a e
Headcount Percent Headcount Percent Male 40 42% 16-24 4 4%
Female 55 58% 25-34 19 20%
Total 95 100% 35-44 25 26.5%
45-54 21 22% All ta by et nicity 55-64 25 26.5%
Headcount Percent 65+ 1 1% BAME* 20 21% Total 95 100% White 67 71%
Not 8 8% specified
Total 95 100%
t nicity by ra e
100%
80%
BAME 60% White 40% 2 Not specified 11 9 20%
0% AO/EO* HEO/SEO* G7+*
* Black, Asian and minority ethnic (BAME), Administrative Officers (AO), Executive Officers (EO), Higher Executive Officer (HEO), Senior Executive Officers (SEO) and Grades 7-5
55 Annual report and accounts 2019/20
Staff numbers and staff composition (audited information) Staff numbers The average number of full-time equivalent staff employed by YJB during 1 April 2019 to 31 March 2020 was as follows.
2020 2019
Permanent Staff 87.8 81
Temporary and Seconded Staff 5.4 5.69
Average Full-time equivalent staff 91.14 87.55
At the start of the financial year the total number of our full-time equivalent staff was 90.22. This increased to 92.45 FTE (95 people) as at 31 March 2020. At 31 March 2020, YJB had 4 agency staff with FTE of 3.6. making the total FTE 96.05. Provision for Trade Union (TU) facility time is agreed at 12 days for the year. We had one TU representative as at 31 March 2020. They utilised the full 12 days which equates to 86.4 hours with an estimated cost of £1,880. Trade Union Facility Time Publication Requirements
Number of employees who were relevant union officials during the relevant period Full-time equivalent employee number
1 1 FTE
Percentage of time spent on facility time
Percentage of time Number of employees
1-50% 1
Percentage of pay bill spent on facility time
Total cost of facility time £1,880
Total pay bill £40,726
Percentage of the total pay bill spent on facility time 5%
Paid trade union activities
Time spent on paid trade union activities as a percentage of total paid facility 100% time hours calculated as:
56 Section 2 Accountability report 2019/20
Staff costs For the year ended 31 March 2020
Other Board Employed (incl. seconded Members Staff & agency staff costs) 2020 2019
£'000s £'000s £'000s £’000s £’000s
Wages and salaries 172 3,765 290 4,227 4179
Social security costs 11 424 – 435 448
Other pension costs – 943 – 943 773 Total gross cost 183 5,132 290 5,605 5,400 Less recoveries in respect of outward secondments – (105) – (105) (54)
Total net cost 183 5,027 290 5,500 5,346
Note that for the purposes of this table, executive directors are included as employed staff – they are shown alongside non-executive board members in the remuneration report. No staff costs were capitalised during 2019/20 (2018/19: nil). The Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and Other Pension Scheme (CSOPS) – known as “alpha”, are an unfunded multi-employer defined benefit scheme, in which the YJB is unable to identify its share of the underlying assets and liabilities. A full actuarial valuation was carried out as at 31 March 2017. For 2019/20, employers’ contributions of £943,000 were payable to the PCSPS (2018/19: £773,000) at one of four rates in the range of 26.6% to 30.3% (2018/19: 20.0% to 24.5%) of pensionable pay, based on salary bands. The scheme’s actuary reviews employer contributions approximately four years following a full scheme valuation. The YJB salary bands were revalorised for the YJB 2018 pay award, which was implemented in December 2018 but backdated to and effective from 1 July 2018.The contribution rates reflect benefits as they are accrued, not when the costs are incurred, and reflect experience of the scheme. Employees can opt to open a partnership pension account (a stakeholder pension with an employer contribution). In 2019/20 employers’ contributions of £10,000 were paid to an appointed stakeholder pension provider Legal and General (2018/19: £6,000). Employer contributions are age-related and range from 8% to 14.75% of pensionable pay. The employee does not have to contribute but where they do make contributions , the employers also match employee contributions up to 3% of pensionable pay (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally-provided risk benefit cover (death in service and ill health retirement). No employees (2019/20: nil) retired early on ill-health grounds; the total additional accrued pension liabilities in the year amounted to nil (2018/19: nil). Expenditure on consultancy We incurred nil expenditure on consultancy in 2019/20 (2018/19: nil). Off-payroll engagements We had no off-payroll engagements in 2019/20 (2018/19: nil).
57 Annual report and accounts 2019/20
Staff and Board composition Our staff and Board member composition between male and female as at 31 March 2020 was as follows:
Transgender Male Female and other40
Board members 8 2 –
Senior Leadership Group 3 8 –
Employees 37 47 –
Total 48 57 –
Note that the column ‘transgender and other’ includes staff who identify as transgender or who preferred not to identify their gender. Note that the Senior Leadership Group (SLG) includes the staff at Senior Civil Service (SCS) level shown in the table below. The composition of those staff at SCS bands at March 2020 by gender was:
Senior Civil Service (SCS) Transgender Male Female equivalent staff by band and other
SCS Pay Band 1 – 1 –
SCS Pay Band 2 1 – –
SCS Pay Band 3 – – –
Total 1 1 –
Average sickness/absence The average number of working days lost by staff due to sickness in YJB was 6.6 days per staff member for the period 2019/20. This is an increase of 1.7 days (25.8%) compared to 4.9 days in 2018/19.
Staff turnover In 2019-20, staff turnover is 13% (2018-19 -18.3%). Transfers within the Civil Service are included in staff turnover. Turnover rates are monitored and there are support initiatives to maintain a healthy level of turnover. The annual Civil Service People Survey, coupled with other research, helps us to understand the experience of staff working at the YJB and take appropriate action to improve effectiveness, including where turnover becomes problematic.
40 Please note this data includes YJB employees, staff on loan to YJB and secondees. Agency staff are not included in this data.
58 Section 2 Accountability report 2019/20
Equal opportunities We encourage a diverse workforce and are committed to ensuring that all eligible people have equality of opportunity for employment and advancement based on their ability, qualifications and suitability for the work. This is recognised in our equality and diversity strategy and action plan. The strategy states that there must be no discrimination, directly or indirectly, against any eligible person on the grounds of the protected characteristics of: • age • disability • gender reassignment • marriage and partnership • pregnancy and maternity • race • religion or belief • sex • sexual orientation This applies to discrimination in recruitment, training, promotion or in any other way. Equality and Diversity Data At 31 March 2020 we did not have diversity data recorded on SOP for 3 employees (3% of YJB staff). We follow the codes of practice issued by the Equality and Human Rights Commission and are committed to promoting equality and diversity in our policies and practices. Employee relations We aim to follow best practice in the management of staff, including giving proper attention to communications, consultation, motivation and staff engagement. We seek to create an environment in which all employees contribute their best to their own and the YJB’s success. We measure staff engagement annually through the Civil Service people survey. We used the results of an interim pulse survey to make improvements to our communication channels. We communicate with staff via a weekly message e-mailed to all staff. Our CEO communicates personally to all staff via a fortnightly “stand up meeting” in the London office and via skype to Wales and home-based staff. This is recorded to allow those unable to attend/dial in to catch up on the latest news. To improve staff engagement, we have implemented a number of initiatives. Our three-year people strategy was developed from our people survey and staff focus groups and was implemented in July 2019. A Staff Engagement Group (SEG) was formed in May 2019 with a mix of staff from across the organisation representing all grades, directorates, ages, genders and roles. The staff engagement group exists to make the YJB an excellent place to work. We will do this by gathering staff feedback and making sure action is taken to improve how we work together. The SEG has developed and delivered our all-staff event with the theme of valuing our staff and making YJB a brilliant place to work. Our People Survey showed staff engagement at 61% (up 8 percentage points from last year). This increase is a reflection of the impact of a number of staff-focused initiatives undertaken during the year. Our response rate of 95% was in the top 12 of the 102 departments who took part in the survey.
59 Annual report and accounts 2019/20
We have a cross-organisational equality and diversity working group, chaired by our CEO, Colin Allars. The group has implemented more rigorous equalities recording and reporting, advised SLG on equalities issues and arranged the delivery of unconscious bias workshops for line managers and staff. The group keeps staff informed of relevant diversity-related communications and upcoming events via their web page on the internal intranet. Although we are limited by Treasury guidance and Ministry of Justice (MoJ) approvals on pay there has been a move away from end of year bonuses to more immediate special recognition awards given throughout the year for outstanding work or behaviours. This is overseen through a quarterly review by the SLG and has shown significantly wider recognition for staff from protected characteristics than the previous end of year bonus. We introduced a voucher scheme in November 2019 to allow staff to receive special recognition awards in the form of vouchers as an alternative to ‘payroll’ payments. This has been well received and many staff from all grades across the organisation have benefitted from this scheme already. Employment of people with disabilities We encourage all staff to record their diversity data, including any disability they may have, on our Shared Services HR system (SOP). We do, however, appreciate that not all staff wish to do so. As at 31 March 2020, 13 employees had declared a disability. When recruiting, we encourage applications from disabled people. We operate a guaranteed interview scheme whereby people with disabilities who meet the criteria for a post are automatically interviewed. This is clearly stated on the application forms. In accordance with the principles set out in our recruitment, selection and induction policy and procedures, we acknowledge our duty under the Equality Act 2010 to make reasonable adjustments to the working environment or conditions of appointment that would enable a disabled person to compete for, and carry out, a job on an equal basis. Civil Service Learning is available to all staff, which includes e-learning options such as disability awareness, mental health awareness and mandatory unconscious bias training, as well as coaching and mentoring. We have promoted MoJ events and fora for people with protected characteristics via our intranet. If a member of staff becomes disabled during their employment, the support given would be determined on a case-by-case basis following consultation with HR Casework Service and Occupational Health. We have set up a mental health allies forum to advise and support staff who may suffer from mental health conditions and to signpost managers to help and to offer guidance in support to staff. We ran a pilot Lifeclubs/Connect programme to offer support to sixteen staff members from all grades, administration officers through to CEO level. This programme consisted of six one-hour workshops designed to help nurture team spirit and dynamism – and to help individuals personally to be more reflective. This pilot was a great success and will be rolled out further in the coming year. Additionally, we are raising awareness of the benefits and support services available to all staff as a part of their induction, at all staff events and through our intranet. Staff are reminded of our employee assistance programme, PAM Assist, anti-bullying and harassment advisers and Occupational Health Services through our regular communication channels.
60 Section 2 Accountability report 2019/20
Parliamentary accountability and audit report
In addition to the primary financial statements prepared under International Financial Reporting Standards (IFRS), the Government Financial Reporting Manual (FReM) requires the YJB to report on losses, special payments and remote contingent liabilities. These notes and disclosures are subject to audit.
Losses and special payments
The total value of losses incurred in the year and in the previous year was less than £300,000. Special payments There were no special payments made in the year ended 31 March 2020 (2018/19: £nil). Remote contingent liabilities In addition to contingent liabilities reported within the meaning of IAS 37, the YJB is also required to disclose details of any liabilities for which the likelihood of a transfer of economic benefit in settlement is too remote to meet the definition of contingent liability. As at 31 March 2020 the YJB has no remote contingent liabilities. Date: 10 September 2020 Signed on behalf of the YJB by
Colin Allars Chief Executive and Accounting Officer
61 Annual report and accounts 2019/20
The certificate and report of the Comptroller and Auditor General to the Houses of Parliament
Opinion on financial statements I certify that I have audited the financial statements of the Youth Justice Board (YJB), for the year ended 31 March 2020 under the Crime and Disorder Act 1998. The financial statements comprise: the Statements of Comprehensive Net Expenditure, Financial Position, Cash Flows, Changes in Taxpayers’ Equity; and the related notes, including the significant accounting policies. These financial statements have been prepared under the accounting policies set out within them. I have also audited the information in the Accountability Report that is described in that report as having been audited. In my opinion: • the financial statements give a true and fair view of the state of YJB’s affairs as at 31 March 2020 and of net expenditure for the year then ended; and • the financial statements have been properly prepared in accordance with the Crime and Disorder Act 1998 and Secretary of State directions issued thereunder. Opinion on regularity In my opinion, in all material respects the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them. Basis of opinions I conducted my audit in accordance with International Standards on Auditing (ISAs) (UK) and Practice Note 10 ‘Audit of Financial Statements of Public Sector Entities in the United Kingdom’. My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of my certificate. Those standards require me and my staff to comply with the Financial Reporting Council’s Revised Ethical Standard 2016. I am independent of YJB in accordance with the ethical requirements that are relevant to my audit and the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Conclusions relating to going concern I have nothing to report in respect of the following matters in relation to which the ISAs (UK) require me to report to you where: • the YJB’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the YJB have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about YJB’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
62 Section 2 Accountability report 2019/20
Responsibilities of the Board and the Accounting Officer for the financial statements As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Board and the Accounting Officer are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Auditor’s responsibilities for the audit of the financial statements My responsibility is to audit, certify and report on the financial statements in accordance with the Crime and Disorder Act 1998. An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs (UK), I exercise professional judgment and maintain professional scepticism throughout the audit. I also: • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of YJB’s internal control. • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • conclude on the appropriateness of the YJB’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the YJB ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my report. However, future events or conditions may cause YJB to cease to continue as a going concern. I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. In addition, I am required to obtain evidence sufficient to give reasonable assurance that the income and expenditure reported in the financial statements have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.
63 Annual report and accounts 2019/20
Other Information The Board and the Accounting Officer are responsible for the other information. The other information comprises information included in the annual report, but does not include the parts of the Accountability Report described in that report as having been audited, the financial statements and my auditor’s report thereon. My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. Opinion on other matters In my opinion: • the parts of the Remuneration and Staff Report and the Parliamentary Accountability disclosures to be audited have been properly prepared in accordance with Secretary of State directions made under the Crime and Disorder Act 1998; and • the information given in the Performance Report and Accountability Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which I report by exception I have nothing to report in respect of the following matters which I report to you if, in my opinion: • adequate accounting records have not been kept or returns adequate for my audit have not been received from branches not visited by my staff; or • the financial statements and the parts of the Accountability Report to be audited are not in agreement with the accounting records and returns; or • I have not received all of the information and explanations I require for my audit; or • the Governance Statement does not reflect compliance with HM Treasury’s guidance. Report I have no observations to make on these financial statements.
Gareth Davies Date: 11 September 2020 Comptroller and Auditor General
National Audit Office 157-197 Buckingham Palace Road Victoria London SW1W 9SP
64 3
Financial statements 2019/20 Annual report and accounts 2019/20
Financial statements
Statement of Comprehensive Net Expenditure for the year ended 31 March 2020
Net Operating Expenditure
2019/20 2018/19
Notes £'000s £'000s
Expenditure
Staff costs 3 5,500 5,346
Amortisation 5 1,438 2,215
Other expenditure 2 77,495 78,762
Income from activities 4 (81) (226)
Net operating expenditure 84,352 86,097
Total Operating Expenditure 84,352 86,097
Non-operating costs
Non-operating loss on transfer of functions – 5,886
Total operating and non-operating expenditure 84,352 91,983
Other comprehensive net expenditure
Net gain on revaluation of intangible assets 5 (38) (55)
Total comprehensive expenditure for the period 84,314 91,928
66 Section 3 Financial statements 2019/20
Statement of Financial Position as at 31 March 2020
2019/20 2018/19
Notes £'000s £'000s
Non-current assets
Intangible assets 5 7,117 7,989
Total non-current assets 7,117 7,989
Current assets
Trade and other receivables 6 493 2,248
Cash and cash equivalents 7 1,051 3,196
Total current assets 1,544 5,444
Total assets 8,661 13,433
Current liabilities
Trade and other payables 8 (1,172) (4,434)
Provisions – short term 9 – (80)
Total current liabilities (1,172) (4,514)
Total assets less current liabilities 7,489 8,919
Non-current liabilities
Provisions 9 (80) –
Total non-current liabilities (80) –
Total assets less total liabilities 7,409 8,919
Taxpayers’ equity and other reserves
Revaluation reserve SoCTE 172 170
General reserve SoCTE 7,237 8,749
Total taxpayers’ equity 7,409 8,919
Colin Allars Chief Executive and Accounting Officer Date: 10 September 2020
67 Annual report and accounts 2019/20
Statement of Cash Flows for the year ended 31 March 2020
2019/20 2018/19
Notes £'000s £'000s
Cash flows from operating activities
Net operating expenditure for the year SoCNE (84,352) (91,983)
(Increase)/decrease in trade and other receivables 6 1,755 (262)
Decrease in trade and other payables 8 (3,262) (2,922)
Costs incurred on behalf of the sponsoring department – 325 –
Adjustments for non-cash transactions
Amortisation 5 1,438 2,215
Impairment of Intangible Assets and Property, Plant & Equipment 5 – 71
Transfer of assets and liabilities to HMPPS – – 5,886
Provisions provided in the year 9 – (214)
Utilisation of provisions 9 – (24)
Services and facilities provided by sponsoring department 2 984 1,781
Net cash outflow from operating activities (83,112) (85,452)
Cash flows from investing activities
Purchase of Intangible Assets 5 (528) (440)
Net cash outflow from investing activities (528) (440)
Cash flows from financing activities
Grants from sponsoring department 11 81,495 83,000
Net cash inflow from financing activities 81,495 83,000
Net decrease in cash and cash equivalents in the period (2,145) (2,892)
Cash and cash equivalents at the beginning of the period 3,196 6,089
Cash and cash equivalents at the end of the period 7 1,051 3,196
68 Section 3 Financial statements 2019/20
Statement of Changes in Taxpayers’ Equity for the year ended 31 March 2020
Revaluation General Taxpayers' reserve Reserve Equity
Notes £’000s £’000s £’000s
Balance at 1 April 2018 233 15,834 16,067
Grants from sponsoring department 11 – 83,000 83,000
Net operating expenditure for the year SoCNE – (91,983) (91,983)
Non-cash charges
Services and facilities provided by sponsoring department 2 – 1,781 1,781
Transfers between reserves
Release of reserves to the general reserve (118) 118 –
Net gain on revaluation of intangible assets 5 55 – 55
Balance at 31 March 2019 170 8,749 8,919
Changes in taxpayers’ equity for 2019/20
Grants from sponsoring department 11 – 81,495 81,495
Net operating expenditure for the year SoCNE – (84,352) (84,352)
Transfer of costs incurred on behalf of the sponsoring department – 325 325
Non-cash charges
Services and facilities provided by sponsoring department 2 – 984 984
Transfers between reserves
Release of reserves to the general reserve (36) 36 –
Net gain on revaluation of intangible assets 5 38 – 38
Balance at 31 March 2020 172 7,237 7,409
69 Annual report and accounts 2019/20
Supporting Notes to the Financial Statements
1. Statement of Accounting Policies
1.1 Basis of preparation These accounts have been prepared in accordance with the Government Financial Reporting Manual 2019- 20 (FReM) issued by Her Majesty’s (HM) Treasury. The accounting policies contained in the FReM apply International Financial Reporting Standards (IFRS) as adapted or interpreted for the public-sector context. They are in a form as directed by the Secretary of State with the approval of Treasury and in accordance with section 41 of, and Schedule 2 to, the Crime and Disorder Act 1998. Where the FReM permits a choice of accounting policy, the policy which is judged to be the most appropriate to the particular circumstances of the YJB for the purpose of giving a true and fair view has been selected. The particular accounting policies adopted by the YJB are described below. They have been applied consistently in dealing with items considered material to the accounts. The functional and presentation currency of the YJB is the British pound sterling (£).
1.2 Going concern The YJB is an executive non-departmental public body (NDPB) whose activities are principally financed by the Ministry of Justice (MoJ). The YJB is created by statute and there is no proposition before Parliament that would suggest the YJB should not be considered a going concern. Having considered the circumstances described above, acknowledging the impact of COVID-19, and from discussion with the MoJ, the YJB considers it appropriate to adopt a going concern basis for the preparation of these accounts.
1.3 Accounting convention These accounts have been prepared on an accruals basis under the historical cost convention, as modified to account for the revaluation of non-current assets where material.
1.4 Changes in accounting policy and disclosures, accounting standards issued but not adopted There have been no changes in accounting policy in the year. IFRS 16 provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less, or the underlying asset is of low value. The assets, to be described as “right of use” assets, will be presented under Property, Plant and Equipment. Implementation of the standard in the public sector has been delayed: it will now be effective from the financial year beginning 1 April 2021. The new standard will change the way the YJB recognises, measures, presents and discloses leases that it holds; however, it will not have a material impact on the YJB's financial statements unless significant new leases are entered into.
70 Section 3 Financial statements 2019/20
1.5 Intangible non-current assets Intangible assets comprise internally developed software for internal use (including such assets under construction), software developed by third parties, and purchased software licences. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the YJB are capitalised when they meet the criteria specified in the FReM, which has been adapted from IAS 38 ‘Intangible Assets’. Other development expenditure that does not meet these criteria is recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Purchased software licences are recognised when it is probable that future service potential will flow to the YJB and the cost of the license can be measured reliably. Such licences are initially measured at cost. Subsequent to initial recognition, intangible assets are measured at fair value. As no active market exists for the intangible assets of the YJB, fair value is assessed as replacement cost less any accumulated amortisation and impairment losses (i.e. depreciated replacement cost). Intangible assets in service are re-measured at the end of each reporting period using the Producer Price Index issued by the Office for National Statistics (ONS). Intangible assets under construction are not amortised until the assets are ready for use. At this point they are amortised using the straight-line method over their expected useful lives. The useful life of internally developed software ranges from three to seven years. This was incorrectly reported as three to five years in the 2018-19 Annual Report & Accounts and this is a correction to that disclosure, not a change of accounting policy. Purchased software licences are amortised over the licence period. Capitalisation threshold The threshold for capitalising intangible assets is £10,000 (including irrecoverable VAT). Assets under construction Assets under construction are valued at historical cost within property, plant and equipment and intangible assets, and are not depreciated or amortised until ready for use. At this point the asset’s carrying value is transferred to the appropriate asset category.
1.6 Impairment An impairment reflects a diminution in value of an asset as a result of a clear consumption of economic benefits or service potential. At 31 March each year, the YJB assesses all assets for indications of impairment. If any such indication exists, the assets in question are tested for impairment by comparing the carrying value of those assets with their recoverable amounts. Where the recoverable amount of an asset is less than its carrying value, the carrying value of the asset is reduced to its recoverable amount. The recoverable amount of an asset is the higher of its ‘fair value less costs to sell’ and ‘value in use.’ Any impairment loss is recognised in the SoCNE. If the impaired asset had previously been revalued, any balance in the revaluation reserve (up to the level of the impairment loss) is transferred to the general fund.
1.7 Leases The accounting standard IAS17 prescribes the accounting policies for leases and makes a distinction between finance leases and operating leases.
71 Annual report and accounts 2019/20
Finance leases Leases of assets where the YJB retains substantially all the risks and rewards of ownership are classified as finance leases. Operating leases Leases other than finance leases are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the SoCNE on a straight-line basis over the period of the lease. Any upfront payments not yet released to the SoCNE are recognised as a lease prepayment in the Statement of Financial Position (SoFP).
1.8 Cash and cash equivalents Cash and cash equivalents recorded in the SoFP and Statement of Cash Flows (SoCF) includes cash in hand and deposits held on call with banks.
1.9 Employee benefits Employee accruals Accruals are made for untaken employee annual leave and bonuses relating to individual performance during the year. Defined benefit pension schemes The provisions of the Principal Civil Service Pension Scheme (PCSPS) cover most past and present employees. The PCSPS is an unfunded defined benefit scheme although, in accordance with section 9 of the FReM, the YJB accounts for this as a defined contribution scheme. The expected cost of the future pension liabilities is expensed on a systematic and rational basis over the period during which it benefits from employees’ services by payment of charges calculated on an accruing basis. Liability for payment of future benefits is a charge on the scheme. Defined contribution pension schemes Under defined contribution schemes, the YJB’s legal or constructive obligation is limited to the amount that it agrees to contribute to the fund. The YJB recognises contributions payable as an expense in the year in which it is incurred. Early departure costs The YJB is required to pay the additional cost of benefits beyond the normal PCSPS benefits in respect of employees who retire early, unless the retirement is on approved medical grounds. The total cost is provided in full when the early departure programme has been announced and is binding on the YJB. Redundancy and other departure costs, where applicable, are paid in accordance with the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972. Exit costs are accounted for in full in the year the exit package is confirmed. Ill health retirement costs are met by the pension scheme and are not included in the YJB’s accounts.
1.10 Income Income is accounted for on an accruals basis. The YJB no longer collects remand income and therefore has no regular and material income streams.
72 Section 3 Financial statements 2019/20
1.11 Expenditure Net Expenditure Net expenditure is wholly attributable to the YJB’s goal of providing leadership in the youth justice system. For this reason, it is not deemed necessary to disclose results by segment. There is no income or expenditure relating to geographical areas outside the United Kingdom. Grant expenditure Grants payable in respect of the YJB’s expenditure are accounted for on an accruals basis. A liability is deemed to arise when the grant recipient carries out the specific activity which forms the basis for entitlement. Funds provided, which have not been fully utilised by the grantee, are disclosed as a receivable in the SoFP. Administration and programme expenditure Other Expenditure within the SOCNE is analysed between administration, programme and notional expenditure in Note 2. The classification of expenditure as administration or programme follows the definition set out in HM Treasury’s Consolidated Budgeting Guidance. Administration expenditure reflects the cost of support activities such as business and corporate support services, back-office administration and administration of grants. Programme expenditure reflects costs directly related to frontline service delivery.
1.12 Notional costs Other Expenditure within the SOCNE includes accommodation, facilities management and corporate services costs incurred by the MoJ on the YJB’s behalf. These services are recorded as a notional charge in the SoCNE to report the full cost of the YJB's operations and the funding for these costs is included in grant-in-aid credited to reserves.
1.13 Provisions Provisions are recognised when the MoJ has a present legal or constructive obligation as a result of past events for which it is probable that an outflow of economic benefits will be required to settle the obligation, and for which a reliable estimate can be made for the amount of the obligation. The YJB has no provisions which require discounting.
1.14 Grants from Sponsoring Department The YJB is principally funded by grant-in-aid received from the MoJ, which is accounted for when received. Grant-in-aid is treated as financing. These are credited to the general reserve because they are regarded as contributions from a controlling party. Other grants received to support the statutory purposes of the YJB or specific initiatives are recognised as income and credited to the SOCNE.
1.15 Contingent liabilities A contingent liability is disclosed when the likelihood of a payment is less than probable, but more than remote. Where the time value of money is material, contingent liabilities required to be disclosed under IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ are stated at discounted amounts.
1.16 Value added tax Most of the activities of the YJB are outside the scope of VAT, therefore output tax does not apply and input tax on purchases is not recoverable. The secondment of staff to local authorities and other bodies is within the scope of VAT and output tax is charged and paid to HMRC. Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase costs of non-current assets.
73 Annual report and accounts 2019/20
1.17 Financial instruments As the cash requirements of the YJB are met through the estimate process, financial instruments play a more limited role in creating and managing risk than would apply to a non-public sector body. The financial instruments the YJB does hold relate largely either to contracts to buy non-financial items (in line with the YJB’s expected purchase and usage requirements) or to amounts owed to the YJB by other areas of the public sector (local government or other government departments) and the YJB is therefore exposed to little credit, liquidity or market risk.
1.18 Critical accounting estimates and judgements Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions The YJB makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. There are presently no estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities.
74 Section 3 Financial statements 2019/20
2. Other Expenditure
2.1 Admin and programme expenditure
Notes 2019/20 2018/19
£’000s £’000s
Admin expenditure
Audit fee – external* 74 70
Audit fee – internal 32 32
Board meetings – 2
Communications 7 6
IT costs 380 358
Legal costs – 66
Other administration 207 230
Personnel costs 15 3
Travel and subsistence 57 80
Total Admin expenditure 772 847
Programme expenditure
Grants to youth offending teams 72,088 71,597
Research 95 62
Travel and subsistence 126 –
Legal Costs 57 –
Other programme expenditure 94 8
Youth justice information and communications technology 3,217 4,610 (ICT) programmes
Provision expense (214)
Total Programme expenditure 75,677 76,063
Other costs
Impairment of intangible assets – 71 Bad debts and other debtors 62 –
Corporate services provided by the department on a non-cash basis 984 1,781
Total Other expenditure 77,495 78,762
*External audit fees do not include any non-audit work undertaken by the NAO. There were no fees paid to NAO for non-audit work in 2019/20 or 2018/19.
75 Annual report and accounts 2019/20
2.2 Services and facilities provided by sponsoring department
2019/20 2018/19
£’000s £’000s
Communications 2 2
Information Operations 13 10
Estates 531 1,185
HR 16 43
ICT 379 455
Commercial Contract Management 43 36
Other services – 50
Total Corporate Overhead Charge 984 1,781
3. Staff Costs
Other (incl. seconded & Board agency staff Members Employed Staff costs) 2019/20 2018/19
£’000s £’000s £’000s £’000s £’000s
Wages and salaries 172 3,765 290 4,227 4,179
Social security costs 11 424 – 435 448
Other pension costs – 943 – 943 773
Total gross cost 183 5,132 290 5,605 5,400
Less recoveries in respect of outward – (105) – (105) (54) secondments
Total net cost 183 5,027 290 5,500 5,346
4. Income from activities
2019/20 2018/19
£’000s £’000s
Other Income 81 226
Total income from activities 81 226
76 Section 3 Financial statements 2019/20
5. Intangible assets 2019/20
Internally Assets under generated construction software Total
£’000s £’000s £’000s
Cost/valuation at 01 April 2019 – 10,672 10,672
Additions 528 – 528
Disposals – – –
Impairments – – –
Reclassifications 606 (606) –
Revaluations – 65 65
Cost/valuation at 31 March 2020 1,134 10,131 11,265
Amortisation at 01 April 2019 – (2,683) (2,683)
Charge for the year – (1,438) (1,438)
Disposals – – –
Revaluations – (27) (27)
Amortisation at 31 March 2020 – (4,148) (4,148)
Net book value at 31 March 2020 1,134 5,983 7,117
Asset financing:
Owned 1,134 5,983 7,117
Net book value at 31 March 2020 1,134 5,983 7,117
77 Annual report and accounts 2019/20
Intangible assets 2018/19
Internally Assets under generated construction software Total
£’000s £’000s £’000s
Cost/valuation at 1 April 2018 – 16,507 16,507
Additions – 440 440
Disposals – (6,279) (6,279)
Impairments – (71) (71)
Revaluations – 75 75
Cost/valuation at 31 March 2019 – 10,672 10,672
Amortisation at 1 April 2018 – (6,727) (6,727)
Charge for the year – (2,215) (2,215)
Disposals – 6,279 6,279
Revaluations – (20) (20)
Amortisation at 31 March 2019 – (2,683) (2,683)
Net book value at 31 March 2019 – 7,989 7,989
Asset financing:
Owned – 7,989 7,989
Net book value at 31 March 2019 – 7,989 7,989
Intangible assets include the following materially significant items:
Remaining Useful Net Book Economic Life Asset Value (years)
£’000s
Youth Justice Application Framework 5,747 5
Business Application Strategy 1,963 5
78 Section 3 Financial statements 2019/20
6. Trade and other receivables
2019/20 2018/19
Amounts falling due within one year: £’000s £’000s
Other receivables & accrued income 487 2,240
Prepayments 6 8
Total 493 2,248
7. Cash and cash equivalents
2019/20 2018/19
£’000s £’000s
Balance at 1 April 2019 3,196 6,089
Net change in cash and cash equivalent balances (2,145) (2,893)
Balance at 31 March 2020 1,051 3,196
The following balances at 31 March 2020 were held at:
Government banking service and cash-in-hand 1,051 3,196
Balance at 31 March 2020 1,051 3,196
8. Trade and other payables
2019/20 2018/19
Amounts falling due within one year: £’000s £’000s
Accruals and deferred income 1,033 480
Payable to HM Prison and Probation Service – 2,798
Payable to the Ministry of Justice – 505
Trade payables 139 651
Balance at 31 March 2020 1,172 4,434
79 Annual report and accounts 2019/20
9. Provisions
2019/20 2018/19
£’000s £’000s
Balance at 1 April 2019 80 318
Provisions utilised in year – (24)
Provisions created in year – 80
Provisions written back in year – (294)
Balance at 31 March 2020 80 80
Of which:
Amounts to be settled within one year – 80
Amounts to be settled within one to five years 80 -
Balance at 31 March 2020 80 80
Provisions relate to legal actions in which the YJB is a defendant.
10. Contingent liabilities disclosed under IAS 37 No contingent liabilities existed at 31 March 2020 (2018/19: Nil).
11. Grants from sponsoring department 2019/20 2018/19
£’000s £’000s
Grant-in-aid from the Ministry of Justice 81,495 83,000
Total 81,495 83,000
12. Commitments At 31 March 2020, the YJB had no operating lease, capital or other financial commitments (2018/19 nil).
13. Commitments under PFI contracts At 31 March 2020, the YJB had no off-balance sheet SoFP PFI or other service concession commitments (2018/19: nil).
14. Related party transactions The YJB is an executive non-departmental public body that, during the 2019/20 financial year, was principally sponsored by the MoJ. The MoJ provides services and facilities to the YJB. These are recharged notionally by the MoJ. In addition, the YJB has a number of transactions with the Her Majesty’s Prison and Probation Service (HMPPS) as well as with local authorities, whose combined balances are material. During 2019/20, the YJB undertook material transactions of the following values with related parties:
80 Section 3 Financial statements 2019/20
2019/20 2018/19
£’000s £’000s
Ministry of Justice
Expenditure with the Ministry of Justice 238 811
Balance owed to the Ministry of Justice at 31 March 2020 – 505
HMPPS
Expenditure with HMPPS – 2,798
Balance owed to HMPPS at 31 March 2020 – 2,798
Colin Allars serves as a director of the YJB on loan from HMPPS. Colin Allars acts as the Accounting Officer for the YJB. Board members are required under the Code of Conduct for YJB Board members to declare any personal, financial and business interests which may conflict with their duties on the Board. Members may not participate in Board discussions or decisions on financial matters where a conflict of interest arises. A register of Board members’ interests is maintained and is available online at: https://www.gov.uk/government/organisations/youth-justice-board-for-england-and-wales/about/ membership
15. Events after the reporting period In accordance with the requirements of IAS 10 'Events after the reporting period', events are considered up to the date on which the financial statements are authorised for issue, which is interpreted as the date of the certificate and report of the Comptroller and Auditor General. There are no disclosable events after the reporting period.
81 CCS0320358550 978-1-5286-1857-1